India and the US have signed the terms of reference for the proposed bilateral trade agreement, paving the way for the conclusion of negotiations for the first tranche of the deal before the fall 2025 deadline set earlier.

“India and US BTA terms of reference have been finalised when the US team was here... The first tranche negotiations will start virtually on the various chapters within this week, and the talks in the physical mode may start at the end of May,” Rajesh Agarwal, additional secretary in the commerce ministry, said.

The two countries are discussing the contours of a bilateral trade agreement (BTA), aiming to more than double India-US trade to $500 billion by 2030, a target that was set during Prime Minister Narendra Modi’s visit to Washington earlier this year.

Both nations are looking to agree on the first draft of a mutually beneficial, multi-sector BTA by this autumn. On the timeline for the negotiations, commerce secretary Sunil Barthwal said it will be good for both India and the US to wrap up the trade deal before the autumn of 2025.

“When we said we want to do a first tranche of BTA with US by fall, that doesn’t mean we can’t do it before fall. If we end up doing the BTA before fall then it will be good for both India and the US,” Barthwal said.

Multiple sources said that India is looking to close talks for the first tranche of the BTA with the US as soon as possible by taking advantage of the 90-day tariff pause announced by President Trump on all countries, excluding China.

After imposing a 26 per cent reciprocal tariff on India on April 2, Trump paused the implementation of steeper duties for several nations, including India, on April 9.

“There are both concerns and opportunities in terms of the tariff situation. India has already taken the path of trade liberalisation with the US and negotiations are on for a BTA. And if we follow that path then I think not only India, US trade will grow and will also open up a lot of opportunities for both nations,” Barthwal said.

He also cited the examples of India’s trade pacts with Australia and the UAE to buttress his claim on higher trade volume after the deal.

“So, I expect that a lot of opportunities will come, and there will be a higher trade with the US in case this BTA materialises,” Barthwal said.

India, he said, is also looking at non-tariff barriers as well as tariff barriers in the agreement. If these barriers are reduced by both sides, it will lead to higher trade growth for the two countries.

Commerce minister Piyush Goyal had recently said that India offers the US a compelling case for a bilateral trade deal, given the outlook on growth and the demographics.

Amid a growing rush among trade partners to be in the US to hold talks with Trump’s team, Japan’s economy minister Ryosei Akazawa said he would be in Washington between Wednesday and Friday for talks with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, reported Reuters.

Japan, a long-time US ally, has been hit with 24 per cent levies on its exports to the US. The minister said that Japan will seek full removal of additional tariffs imposed by the US. Japan hopes to convince the US that the two countries can achieve a “win-win” situation without resorting to tariffs such as by expanding Japanese investment in the US, Akazawa said. He did not comment on a possible timeframe for striking a deal.