India, US desire to give preferential market access to businesses; talks on for trade pact: Goyal

Paris | India and the US desire to give preferential market access to each other's businesses and teams of both the countries are working together on the proposed bilateral trade agreement, Commerce Minister Piyush Goyal has said.

In February, US President Donald J Trump and Prime Minister of India Narendra Modi announced plans to negotiate the first tranche or phase of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall (September-October) of 2025. It is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current level of USD 191 billion.

"Both countries are committed to work together, both countries desire to give preferential access to each other's businesses and we are working towards the bilateral trade agreement," Goyal told reporters here.

Goyal is here on an official visit to hold talks with French leaders and business representatives to boost trade and investments.

When asked about an announcement of Trump to double tariffs on steel and aluminium to 50 per cent, he also said that the two countries will continue to work together to resolve all these issues bilaterally.

"Let us wait and watch ...both the US and India share good relations and we will continue to work together to resolve all these issues bilaterally," he said.

Trade experts have stated that the further increase in the import duty by the Trump administration would impact Indian exporters, particularly those engaged in value-added and finished steel products and auto-components.

On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4.

Trump originally invoked this provision in 2018 to set the 25 per cent tariff on steel and 10 per cent on aluminium. He raised tariffs on aluminium to 25 per cent in February 2025.

In 2024-25, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US, with key categories, including USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles.

India has already issued a formal notice at the World Trade Organization (WTO), reserving its rights to impose retaliatory tariffs on US goods in response to the earlier steel tariffs.

A team of US officials is visiting India this week for discussions on the proposed interim trade agreement between the two countries.

The visit gains importance as India and the US are likely to agree on an interim trade agreement by the end of June, with New Delhi pushing for full exemption from the 26 per cent reciprocal tariff on domestic goods.

India's chief negotiator, Special Secretary in the Department of Commerce Rajesh Agrawal, last month had concluded his four-day visit to Washington.

He held talks with his US counterpart on the proposed agreement.

Goyal too was in Washington to give an impetus to trade talks.

There is a possibility that both sides agree on an interim trade deal before the first tranche.

The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade.

Talking about India's free trade pact with four-European nation bloc EFTA, Goyal said USD 100 billion FDI (foreign direct investment) commitment under the agreement does not include money coming into stock market through FIIs.

"This is solid FDI coming into the country... This USD 100 billion of FDI comes with technologies... It will (also) catalyse nearly USD 500 billion of investments roughly.

"With this investment, the whole ecosystem gets created, hotels come up, infrastructure comes up, power and water is utilised. The whole ecosystem will add much more to the economy. So it's a massive investments that we are looking coming through this EFTA agreement," he added.

The implementation process of this pact is progressing fast and is expected to come into force before the end of this year.

The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

When asked if India would have similar arrangement in the proposed trade pact with the 27-nation bloc EU, he said: "The member countries are large investors in india, so we may not go that ground in our FTA with EU."