India in talks to reduce tariffs in bilateral trade agreement with US: Sources

India is currently engaged in discussions with the United States to reduce average applied tariffs, with the aim of advancing a mutually beneficial trade relationship, sources told CNBC-TV18. This development is seen as part of India’s broader effort to lower tariffs through a series of bilateral trade agreements, following similar steps with countries like Australia, the UAE, Switzerland, and Norway.Commerce and Industry Minister Piyush Goyal is leading an Indian delegation to Washington, D.C., from March 3-6, 2025, for talks with US Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai. The discussions mark the beginning of what is expected to be a long-term negotiation process toward a comprehensive Bilateral Trade Agreement (BTA), with both countries aiming to finalise the deal by the fall of 2025.

In February 2025, India and the US had agreed to negotiate the first tranche of the BTA, with a focus on increasing market access, reducing tariff and non-tariff barriers, and enhancing supply chain integration. The agreement was endorsed by Indian Prime Minister Narendra Modi and US President Donald Trump, who designated senior representatives to lead the negotiations.
Minister Goyal’s current visit marks the beginning of these discussions, which are expected to address a range of trade issues, including the controversial topic of tariffs. Both countries have outlined their respective interests, with each side’s sensitivities expected to factor into the final agreement.While trade negotiations between India and the US were previously discussed during the Trump administration, they did not result in a deal.