India, US Push for Early Conclusion of Trade Pact Amid Tariff Dispute.

India and the United States have agreed to continue negotiations for an early conclusion of a mutually beneficial Bilateral Trade Agreement (BTA), despite ongoing tensions over tariffs and visa fees .An Indian delegation led by Commerce and Industries Minister Piyush Goyal visited the US from September 22–24, holding talks with US government officials, businesses, and investors. Goyal met with Ambassador Jamieson Greer (USTR) and Sergio Gor (US Ambassador-designate to India) to discuss key trade issues. According to the government, the meetings were constructive and both sides exchanged views on the possible contours of the deal, agreeing to maintain engagements to expedite its conclusion. US-based business leaders reportedly showed confidence in India’s growth prospects and expressed interest in expanding investments.

Tariff and Visa Challenges

The talks come at a difficult time in India–US relations:

• In July, US President Donald Trump imposed 25% tariffs on Indian goods, later increasing them to 50% in August, citing India’s continued import of Russian oil.
• The Trump administration recently announced a $100,000 fee on new H1-B visa petitions, a move expected to heavily impact Indian IT workers, who make up over 72% of H1-B holders.
• From October 1, 2025, the US will impose a 100% tariff on branded and patented pharmaceutical imports, directly affecting India, which hosts the largest number of USFDA-approved plants outside the US.

India’s Concerns

India has expressed strong reservations against opening up its agriculture and dairy sectors, which are critical for rural livelihoods. These remain sensitive issues in the negotiations.

Meanwhile, India’s pharmaceutical sector is particularly exposed to the new tariff measures. In FY25 (April–December), India exported ₹1.87 lakh crore ($21.7 billion) worth of pharma products, with the US being the single largest market. Overall global pharma exports from India in 2024–25 stood at nearly $30 billion, with formulations and biologics accounting for 79% of shipments.

Way Forward

Talks for a “just, balanced, and mutually beneficial” agreement began in March 2025, with the goal of finalizing the first phase by October–November 2025. Both governments have indicated willingness to continue working towards an early settlement despite ongoing disputes.