India and the US are set to hold discussions in the coming weeks to determine the scope and structure of their proposed bilateral trade agreement, a senior official said on Monday.

During Prime Minister Narendra Modi’s recent visit to Washington, both nations committed to more than doubling their bilateral trade to $500 billion by 2030 and negotiating the first phase of a broad-based trade agreement (BTA) by fall 2025.

“Give us a couple of weeks to assess the level of ambition for the first tranche and define the nature of the agreement. Both sides need to meet and finalise its broad contours,” additional secretary in the department of commerce Rajesh Agrawal told reporters.

The two countries have also agreed to enhance bilateral trade by increasing US exports of industrial goods
to India and expanding India’s exports of labour-intensive manufactured products to
the US.

Agriculture trade, which currently sees India exporting over $4 billion worth of agri-products to the US, is also expected to receive a boost.

“There is a tight timeline for concluding the first phase of the trade pact. Both sides aim to finalise it within the next 8-9 months,” Agrawal said.

Commerce secretary Sunil Barthwal said discussions during the visit laid out a road map to strengthen trade ties. Typically, free trade agreements involve eliminating or reducing tariffs on traded goods, easing regulatory norms for services and encouraging investments.

Negotiations on a mini-trade deal between the two countries were previously explored during the Donald Trump-administration but were shelved after President Joe Biden’s team opted against such pacts.

According to the Global Trade Research Initiative (GTRI), 75 per cent of US exports to India face an average tariff of less than 5 per cent. In contrast, Indian exports of labour-intensive goods such as textiles, garments, and footwear encounter high US tariffs, ranging from 15 per cent to 35 per cent.

In 2023, total US-India bilateral trade in goods and services reached $190.08 billion, with India’s merchandise exports at $83.77 billion and imports at $40.12 billion, creating a trade surplus of $43.65 billion in India’s favour.

India’s services exports to the US amounted to $36.33 billion, with imports at $29.86 billion, resulting in a $6.47 billion surplus.