India May Secure First Trade Deal with Current US Administration
US Treasury Secretary Scott Bessent has indicated that India is favorably positioned to become the first country to finalize a bilateral trade agreement (BTA) with the current US administration. Speaking to journalists on Wednesday, April 23rd, 2025, Bessent suggested talks are nearing a successful conclusion, potentially allowing India to avoid significant reciprocal tariffs set to resume in July. Here is the Secretary's rationale, the status of negotiations, and the broader context of the proposed agreement.
Why prioritise India?
As per sources, Secretary Bessent highlighted several factors making a trade deal with India comparatively simpler. He noted that India does not impose "so many high tariffs" and presents fewer non-tariff trade barriers compared to other potential partners. Bessent also cited the absence of currency manipulation concerns and minimal government subsidies as contributing factors simplifying the negotiation process. This assessment underscores a view within the US administration that reaching a comprehensive agreement with India is more feasible in the near term. The proposed BTA aims ambitiously to more than double bilateral trade from its current level of over $190 billion to $500 billion by 2030.
Formal negotiations are actively underway. The first in-person meeting between the chief negotiators commenced in Washington D.C. this week, following the finalization of the BTA's terms of reference. Both Indian and US teams are reportedly working intensively over three days to resolve outstanding issues. A key objective is to achieve at least an interim trade agreement or understanding before early July 2025. This deadline is significant because a 90-day pause on proposed 26% reciprocal US tariffs on Indian goods is set to expire then, although a baseline 10% tariff remains. Indian Finance Minister Nirmala Sitharaman, during a recent US visit, expressed optimism, stating India hopes to "conclude positively" the initial phase of the BTA by the fall of 2025, emphasizing India's proactive engagement with the US administration on this front.
A US-India trade deal could be finalized soon. India might be the first country to get such a deal from the current US government. This is a big step. Secretary Bessent thinks it's possible because India has fewer trade hurdles. This shows both countries have similar goals. Finishing even part of the deal before July would help avoid tariffs. It would also strengthen the partnership and boost trade.
