Negotiations are going on regarding the proposed Free Trade Agreement (FTA) between India and America. India’s Chief Commerce Secretary Rajesh Aggarwal left for America tonight, where he will participate in talks with the Indian delegation. The Indian team is already present in America and discussions are going on between the two countries on many important points including tariff related issues.
Commerce Secretary Rajesh Aggarwal said about his visit that India, America Ready to increase energy imports. He said, “In the last 7-8 years, energy purchases (mainly crude oil) from America have declined from $25 billion to $12-13 billion. This means there is a possibility of additional purchases of about $12-15 billion, which will not affect the refinery configuration.”
He said that India wants to diversify its energy import policy. The best strategy for India as a big buyer is to diversify our sources. And in this direction we have given positive signals to the American side.
Let us tell you that India buying more crude oil from America can also remove Washington’s concern regarding India-US trade deficit (USD 45.8 billion, 2024-25). Aggarwal said, “We are ready to buy energy from America, provided there is availability at a reasonable price.”
However, he also clarified that currently there is a shutdown going on in America, due to which the administrative capacity there is affected. He further said, “This is not the right time for full-scale talks, but both sides are trying to find a way forward.”
Five rounds of talks have taken place so far regarding the agreement.
It is noteworthy that the leaders of both the countries had directed in February 2025 that work on the proposed Bilateral Trade Agreement (BTA) should be progressed rapidly and its first phase should be completed by October-November 2025. So far five rounds of talks have been completed.
Last month, Commerce and Industry Minister Piyush Goyal had talked to American officials in New York. On September 16, a meeting was held between US Assistant Trade Representative Brendan Lynch and Indian officials in New Delhi, in which both sides stressed on a quick and balanced solution.
This is the goal of the proposed agreement
Recently, US Ambassador-designate Sergio Gore also spoke to the Commerce Secretary regarding India-US economic relations. The aim of this proposed agreement is to increase bilateral trade to $500 billion by 2030, which is currently around $191 billion.
America remained India’s largest trading partner for the fourth consecutive year in the financial year 2024-25. The total trade between the two countries was $131.84 billion, of which India’s exports were $86.5 billion and imports were $45.3 billion.
At present, America accounts for 18 percent of India’s total merchandise exports, 6.22 percent of imports and 10.73 percent of total trade.
India-America relations soured!
Let us tell you that for some time now the sourness in the relations between India and America was clearly visible. America has imposed 50 percent tariff on India. America has imposed 25 percent additional tariff on oil purchases from Russia. However, India has called it unfair and unjust. Apart from this, Indian industry has also expressed concern about the change in H1B visa policy.
However, the recent telephone conversations between Prime Minister Narendra Modi and US President Donald Trump have created a positive environment in this direction. It is expected that the upcoming round of talks will bring new energy to the trade relations between the two countries.
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