So far, five comprehensive rounds of discussions have already been held regarding the proposed bilateral trade agreement (BTA) between India and the United States, and the next step in this ongoing negotiation process was supposed to be the sixth round of talks. For this purpose, a delegation from the United States had planned a visit to India, which was originally scheduled to begin on August 25. However, according to an official source, this meeting is now likely to be postponed and pushed to a later date rather than taking place as originally decided.
The sixth round of negotiations, which was expected to take place between August 25 and August 29, carried significant importance for both countries. The official, who chose to remain anonymous, confirmed that the planned visit would most likely be rescheduled, thereby delaying the momentum of the trade discussions. This deferment is especially notable because of the recent trade measures taken by the United States, including the imposition of an unusually high 50 percent duty on goods coming from India, which has already raised concerns.
The United States, in these negotiations, has been making strong demands for increased market access, particularly in sensitive and politically delicate sectors such as agriculture and dairy. These demands, however, are not acceptable to India, as meeting them could directly harm the livelihoods of millions of small and marginal farmers who are dependent on these sectors for survival. India has made its stance clear by repeatedly emphasizing that the interests of its farmers and cattle rearers will not be compromised to secure a trade deal.
Both India and the United States have announced their intentions to conclude the first phase of the BTA by the fall season of 2025, around September to October. The two countries also share an ambitious goal of expanding their bilateral trade to reach a massive target of 500 billion US dollars by the year 2030. This would mark a significant jump from the current trade figure, which stands at 191 billion US dollars. Such growth would strengthen the economic partnership between the two nations, but it would require careful handling of sensitive issues on both sides.
Meanwhile, the tariff situation has added further complexity to the negotiations. From August 7 onwards, a 25 percent tariff on Indian goods entering the US has already come into effect. To add to this challenge, an additional 25 percent penalty tariff has also been announced by the US, which is scheduled to come into force on August 27. This penalty is a direct consequence of India’s purchases of crude oil and military equipment from Russia, which the US views unfavorably. These escalating tariffs are likely to impact trade relations and create hurdles in the progress of the agreement.
Despite these challenges, recent trade statistics have shown encouraging results. Between April and July, India’s exports to the United States increased by a strong 21.64 percent, reaching 33.53 billion US dollars. At the same time, imports from the US into India also recorded positive growth, rising by 12.33 percent to reach 17.41 billion US dollars, according to data from the Ministry of Commerce. These figures reflect a steady upward trend in trade flows between the two nations despite policy differences.
The United States has remained India’s single largest trading partner during the April–July period of the 2025–26 financial year, with total bilateral trade between the two nations reaching 12.56 billion US dollars. Moreover, India’s exports to America have been showing consistent positive growth since April of this year, underscoring the resilience of the trade relationship even amidst ongoing tariff disputes and complex negotiations.
