India will dispatch a trade delegation led by chief negotiator Darpan Jain to the United States from 20th to 22nd April to advance discussions on a proposed bilateral trade agreement (BTA), marking the first in-person engagement between the two sides since October.
Officials indicated that while New Delhi remains committed to concluding the agreement, evolving tariff dynamics have necessitated a reassessment of its structure and scope. An official was quoted as stating that the agreement would need to be recalibrated and redrafted, with significant changes expected from the US side. The same official added that India was engaging with Washington on the contours, limits and commitments expected from the US, while also seeking clarity on the trade-offs being proposed.
The visit to Washington follows a recent 40-minute telephone conversation between Prime Minister Narendra Modi and US President Donald Trump. Another official noted that the Indian delegation would approach the discussions with an open mind, observing that several countries were revisiting earlier trade arrangements in light of shifting global trade conditions. The official further explained that, as the agreement has not yet been finalised, India retains the flexibility to modify its terms before signing.
Recent developments in US tariff policy have added complexity to the negotiations. On 7 February, Washington removed a 25 per cent penal tariff imposed on India over its purchases of Russian oil and reduced reciprocal tariffs to 18 per cent. Subsequently, on 20 February, the Supreme Court of the United States struck down tariffs introduced under the International Emergency Economic Powers Act. However, on 24 February, the US imposed a 10 per cent blanket tariff on all countries for a period of 150 days following the court’s decision.
Commerce Secretary Rajesh Agrawal stated that efforts were underway to finalise a legal pact as a logical follow-up to the joint statement issued on 7 February. He noted that further discussions and sustained engagement would be required to move the process forward.
In a separate move, India rejected allegations made by the Office of the United States Trade Representative under its Section 301 investigation into excess structural capacity in sectors such as petrochemicals and textiles. Responding to concerns over its US $42 billion trade surplus with the US in 2025, New Delhi argued that such imbalances were a macroeconomic phenomenon arising from a combination of factors, including the influence of non-market economies.
The government also maintained that India’s comparatively smaller share in US trade meant it could not be held responsible for the widening American trade deficit. It further contended that the US notice lacked sufficient rationale or prima facie evidence to substantiate claims that India’s industrial sectors possess structural excess capacity contributing to the surplus.
