Union Commerce Minister Piyush Goyal met US Secretary of Commerce Howard Lutnick on Tuesday. They discussed ways to speed up the first phase of the India-US Bilateral Trade Agreement.

After the meeting, Goyal posted on X, “Good discussions with Secretary Howard Lutnick towards expediting the first tranche of India-US Bilateral Trade Agreement.”

Good discussions with Secretary @HowardLutnick towards expediting the first tranche of India-US Bilateral Trade Agreement. pic.twitter.com/8JjklXyEjl

— Piyush Goyal (@PiyushGoyal) May 19, 2025

Tariff Pause Drives Urgency

Notably, this visit comes after US President Donald Trump announced a 90-day pause on tariff hikes starting April 9. This includes a proposed 26% tariff on Indian goods. Therefore, India wants to finish the deal before the pause ends.

Trade Volume Reaches $129 Billion

According to 2024 data, India and the US traded goods worth around $129 billion. The US remains India’s top trading partner. Moreover, India has a $45.7 billion trade surplus with the US.

Trump’s Comments Raise Eyebrows

Last week, Trump made a strong claim. He said India had agreed to remove all tariffs on US goods. However, he added that he was “in no hurry” to complete the deal. During a Fox News interview, he also stated that “India is the country with barriers he is determined to remove.”

Jaishankar Offers a Careful Response

Meanwhile, Indian External Affairs Minister S. Jaishankar responded to Trump’s comments. He said, “Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature.”

A 3-Phase Trade Deal in Progress

Furthermore, Bloomberg reported that India and the US are designing a trade agreement in three stages. In the first phase, both sides may lower trade barriers and improve access to each other’s markets—especially for industrial and agricultural products.

In the second phase, India and the US could sign a broader agreement between September and November. Officials say this stage will include more detailed arrangements.

Finally, the third and most comprehensive phase will need US Congress approval. As a result, the final agreement may not be ready until next year.