US Treasury Secretary Scott Bessent has said that India is likely to become the first country to finalise a Bilateral Trade Agreement (BTA) with the United States. If concluded, the deal could help India avoid a 26 per cent reciprocal tariff regime, which has been temporarily paused until July 2025.
Why India stands out
In a media roundtable, Bessent noted that India’s low tariff structure, minimal government subsidies, and lack of currency manipulation made it an easier partner for the US. “India also has fewer non-tariff trade barriers… So reaching a deal with the Indians is much easier,” he was quoted as saying in a New York Post report.
Target: $500 billion in trade by 2030
The proposed BTA — ‘Mission 500’ — aims to double bilateral trade volumes to $500 billion by 2030, up from the current $190 billion. The initiative was first floated and announced on February 13, 2025, during PM Modi’s visit to the US when he addressed a press conference after meeting US President Donald Trump.
Negotiations gain momentum
This week marked a significant milestone with the first in-person meeting between the chief negotiators of both nations. Led by India’s chief negotiator Rajesh Agrawal, the Indian team is holding three days of intensive discussions in Washington to fasttrack a framework for agreement.
With the 90-day pause on the 26 per cent reciprocal tariffs expiring in July 2025, both countries are under pressure to reach at least an interim understanding. Meanwhile, India continues to face a 10 per cent tariff under the current US trade policies.
Positive signs from New Delhi
Finance Minister Nirmala Sitharaman, who was in the US earlier this week, expressed optimism about the deal’s progress. “We are one of the countries actively engaging with the new US administration to finalise a trade pact,” she said, while addressing the Indian diaspora in San Francisco.
Strategic implications
If finalised, the agreement could mark a major milestone in India-US economic ties, strengthening strategic and commercial cooperation between the two democracies amid global supply chain realignments.
