Tue Apr 22 07:39:03 UTC 2025: ## India and US Finalize Roadmap for Bilateral Trade Agreement
**New Delhi, April 22, 2025** – India and the United States have finalized the terms of reference for negotiations on a Bilateral Trade Agreement (BTA), marking a significant step towards a more reciprocal trade relationship. The announcement follows a meeting between Prime Minister Narendra Modi and U.S. Vice President J.D. Vance in New Delhi on April 21st. This was Vice President Vance’s first visit to India in 12 years.
The U.S. Trade Representative (USTR), Jamieson Greer, stated that the agreement aims to address what the U.S. considers a serious lack of reciprocity in current trade relations. The U.S. cites a $45.7 billion goods trade deficit with India in 2024, a 5.1% increase from 2023. This imbalance is attributed to India’s high average applied tariff of 17%, significantly higher than the U.S. average of 3.3%. The disparity is even more pronounced in agricultural products, with India’s average tariff at 39% compared to the U.S.’s 5%. Further contributing to the deficit are technical and regulatory barriers, and restrictions on market access across various sectors.
The USTR highlighted India’s recent tariff reductions and expressed optimism about further reductions as part of the BTA. The finalized terms of reference cover key issues including tariffs, non-tariff barriers, rules of origin, and customs facilitation. The first phase of the agreement is expected to be completed by the fall of 2025. Both countries expressed confidence that the BTA will create new opportunities for workers, farmers, and entrepreneurs in both nations.
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