“We are engaged with the US side on the trade deal and our contacts are regular,” Agarwal told reporters here.
Both countries had finalised the contours of the first phase of the BTA in February. However, shifts in the US tariff landscape have triggered fresh rounds of negotiation.
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The US Supreme Court’s decision striking down the earlier reciprocal tariff structure imposed by President Donald Trump added further complexity to the timeline, though officials have previously maintained that the groundwork for the framework deal is largely complete and both sides are simply waiting for the right moment to sign.
India currently faces an additional 10 per cent duty on its goods under a Section 301 probe examining alleged forced labour concerns in the US.
Russian oil bill: India watching closelyOn the more pressing issue, the US Senate’s Russian oil tariff bill, Agarwal declined to comment, calling it an internal legislative process. The bill, cleared by an overwhelming Senate vote earlier this month, would empower President Trump to impose 100 per cent tariffs on goods from the top five importers of Russian oil and gas, a list that includes India and China, over allegations that such trade is helping fund Russia’s war in Ukraine.
A government source described the bill as “a matter of concern” but said India is closely tracking developments and remains in touch with US counterparts at multiple levels. The source also pushed back on suggestions linking India’s UPI reforms to the trade talks, calling such claims “misleading and factually incorrect.”
Tariff edge over competitors key to deal
Agarwal said a functioning trade deal would bring greater stability and predictability to the India-US trade relationship, allowing businesses on both sides to plan with more confidence.
The Commerce Ministry reiterated that India continues to actively engage with US authorities to resolve outstanding trade issues and is working toward an early conclusion of the BTA.
Commerce and Industry Minister Piyush Goyal has said the first tranche of the agreement will come into force only once the US ensures India gets a comparative tariff advantage over its export competitors, including Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia, all of whom compete with India in the American market.
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The US has levied an additional 10 per cent tariff on goods from India and several other countries since July 24. A tariff edge over these competing exporters would significantly boost the price competitiveness of Indian goods in the US.
India exported goods worth roughly $87 billion to the US in FY26. The two countries are targeting bilateral trade of $500 billion by 2030, up from the current $191 billion, a goal that would require the BTA’s swift conclusion. The BTA was formally proposed in February following directives from the leadership of both nations.
Goyal and US Trade Representative Jamieson Greer held bilateral talks in June on issues concerning the first phase of the agreement.
With inputs from PTI