India’s commerce minister, Piyush Goyal, clarified that an interim bilateral trade agreement (BTA) with the United States will only be finalised once India secures a “comparative tariff advantage.” Government officials emphasised this point on Thursday during a workshop focused on optimising use of India’s existing free trade agreements (FTAs), even as negotiations with numerous large economies continue.
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## What India is waiting for
Goyal reiterated that finalising the India-US interim BTA hinges on getting a tariff regime that puts Indian exporters at a benefit relative to competitors. The framework for this agreement was established on February 2, but the deal stalled after the US Supreme Court struck down a legal basis for Washington’s promised preferential tariffs.
“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details,” Goyal said, underlining that India seeks incentives that are not outdone elsewhere.
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## India’s expanding network of FTAs
Beyond the US deal, India has successfully moved forward with nine FTAs, each providing Indian goods preferential access abroad. Under Prime Minister Narendra Modi’s leadership, those trade pacts that are already operational include agreements with:
– Mauritius
– United Arab Emirates (UAE)
– Australia
– European Free Trade Association (EFTA)
– Oman
– United Kingdom
Meanwhile, FTAs with New Zealand and the European Union are in the process of being fully implemented.
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## Other trade talks on the horizon
Goyal indicated that India is engaging in ongoing negotiations to ink multiple bilateral trade deals over the coming months and years. These include potential agreements or discussions with:
– Canada
– Mexico
– Chile — notably for its critical minerals
– Mercosur
– Southern African Customs Union (SACU)
– Gulf Cooperation Council (GCC)
– Israel
In addition, India is reviewing and seeking to enhance its existing FTAs with regional partners such as ASEAN, South Korea, and Japan. The goal is to expand trade access so India can tap into approximately 75% of global trade under more favorable tariff conditions compared to its competitors.
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## Headwinds and US trade pressure
Trade analysts warn that India’s path to sealing the BTA faces complications. The US imposed a 10% tariff in July on certain labour-intensive Indian goods in response to alleged use of forced labour, under Section 301 of the US trade law.
The situation has escalated with Washington launching another Section 301 probe targeting India’s alleged excess industrial capacity. These developments, especially uncertain or punitive trade actions, must be resolved to arrive at a “fair, equitable and mutually beneficial trade agreement,” experts say.
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