India-United States Interim Trade Pact

India and the United States are actively negotiating an interim trade pact, with a possible agreement by June 25, 2025. This comes as both nations aim to finalize the first phase of a broader bilateral trade agreement (BTA) by September-October this year. Key negotiators, including India's chief negotiator Rajesh Agrawal and Commerce and Industry Minister Piyush Goyal, have held discussions with their US counterparts, including US Commerce Secretary Howard Lutnick. India is pushing for a full exemption from the 26 percent reciprocal tariff imposed by the United States on Indian goods, which is currently suspended until July 9. India seeks duty concessions for labor-intensive sectors such as textiles, gems and jewellery, and leather goods, while the United States is looking for concessions in industrial goods, electric vehicles, wines, and certain agricultural products. The United States has been India's largest trading partner for the past four years, with bilateral trade valued at USD 131.84 billion in 2024-25. Both countries aim to more than double this trade to USD 500 billion by 2030, with a successful agreement expected to enhance market access and exports.