The proposed India-US Bilateral Trade Agreement (BTA) remains under negotiation, with the government telling the Lok Sabha on August 11 that discussions between the two countries are continuing.
The government said the agreement is aimed at expanding bilateral trade and investment while providing greater tariff stability and long-term predictability for businesses. Negotiations have involved several sensitive areas where both sides are seeking outcomes that protect their respective economic interests.
India has maintained that the interests of key domestic sectors, including agriculture and dairy, need to be protected during the negotiations. The government has also been working to improve market access for Indian exporters and strengthen the country’s position in global supply chains.
The continued negotiations come as India seeks to diversify its export markets and reduce the impact of trade uncertainties. The government has highlighted the importance of expanding commercial ties with multiple markets while strengthening existing trade partnerships.
India’s existing free trade agreements accounted for $179.1 billion, or 40.5% of the country’s total merchandise exports, in FY2025-26, underscoring the growing importance of trade agreements in supporting export growth.
The government has also been encouraging exporters to explore new markets and improve competitiveness amid changing global tariff policies. A parliamentary panel recently called for the early conclusion of the India-US trade pact and sought tariff exemptions for key Indian export sectors.
For Indian businesses, the eventual agreement could provide greater clarity on tariffs and market access in one of the country’s largest export destinations. However, the latest government statement indicates that negotiations are still ongoing and a final agreement has yet to be concluded.
Both sides are expected to continue discussions on outstanding issues, with the outcome likely to have a significant impact on bilateral trade, investment and India’s export strategy.