Image Credit: X account @PiyushGoyal
Goyal, Lutnick Accelerate India-US Trade Talks
Commerce and Industry Minister Piyush Goyal met US Secretary of Commerce Howard Lutnick in Washington, D.C., on May 19 to fast-track discussions on the long-awaited India-US Bilateral Trade Agreement. The high-level meeting comes amid a 90-day pause on additional US tariffs, with both sides pushing to conclude the first phase of the deal before the July deadline.
First Phase of India-US Trade Deal in Focus
Goyal, accompanied by India’s Chief Trade Negotiator Rajesh Agrawal and senior officials, is in Washington as part of the government’s “Mission 500” initiative aimed at scaling bilateral trade to $500 billion by 2030. The current round of talks is focused on finalizing the first phase of the three-phase trade agreement.
The initial phase aims to secure improved market access for Indian industrial products and select agricultural items while resolving non-tariff barriers, particularly around quality standards and regulatory checks. This early stage is crucial to avoid the reinstatement of higher tariffs that were previously suspended by the US government.
Currently, Indian goods entering the US face a base tariff of 10%. If the agreement is not signed by July, this could return to the earlier 26%, significantly hurting Indian exporters.
Goyal’s Strategic Engagements in Washington
During his visit, Goyal is also scheduled to meet US Trade Representative Jamieson Greer. Their discussions aim to convert the temporary tariff pause into long-term economic relief and unlock early wins that could help ease tensions between the two trading partners.
The meetings with Lutnick and Greer are being viewed as essential diplomatic efforts to remove longstanding bottlenecks in sectors such as digital trade, services, and intellectual property. The goal is to ensure that subsequent phases of the trade deal can move forward smoothly once the initial agreement is finalized.
Howard Lutnick’s Role in Driving the Talks
US Secretary of Commerce Howard Lutnick has emerged as a key figure in the trade negotiations. His active involvement underscores the importance the Biden administration places on economic cooperation with India. Lutnick’s dialogue with Goyal is intended to resolve irritants that have stalled past efforts and build a framework of trust for the more challenging negotiations ahead.
The next two phases of the deal will address complex matters such as services, digital trade, and sensitive sectors like pharmaceuticals and data localization. Both sides hope that reaching consensus on Phase One will create momentum for broader reforms.
Outlook Ahead
If successful, the trade deal could be a landmark achievement in India-US economic relations and a critical milestone ahead of the upcoming global economic summits later this year. The Goyal-Lutnick meeting marks a renewed urgency to protect Indian exporters from tariff shocks and send a clear signal of trade stability to markets.
The next few weeks will be crucial, with both countries aiming for a formal announcement by July. A successful conclusion to the first phase could pave the way for comprehensive trade liberalization by the end of 2025.
