India to talk about signing BTA with the US once it gets preferential access: Govt sources

Indicating that India is in a relatively favourable position, having secured a better deal than competitors in Southeast Asia and neighbouring countries, sources added that India’s approach is to seek preferential market access in the US. Both countries are looking to deepen their multidimensional relationship across sectors.

Last month, India’s Commerce and Industry Minister Piyush Goyal met the United States Trade Representative (USTR) Jamieson Greer on the sidelines of the 14th Ministerial Conference

(MC-14) of the World Trade Organisation (WTO) in Cameroon to exchange views on the WTO agenda as well as the next steps in the India-US BTA negotiations.

Following the meeting, the minister posted on social media, “Had a very productive discussion,” and said they “explored ways to further deepen our economic cooperation and bilateral trade ties.”

Also read: India, US discuss next steps in BTA talks on WTO Ministerial sidelines

India is awaiting the finalisation of the new tariff structure by the United States before signing the trade agreement finalised by both sides.

On March 16, government sources told CNBC-TV18 that when the India-US deal was earlier expected to be signed in March, the Supreme Court judgment on IEEPA tariffs had not yet come.

They added that the previously levied tariffs no longer exist, and 10% tariffs under BOP have been in place for five months under Article 122. Therefore, any deal India signs must be aligned with the prevailing tariff structure or the comparative advantage it secures in the US market.

Commerce Secretary Rajesh Agrawal noted that India and the US had announced a trade deal on February 2, 2026, followed by a joint statement on February 7, 2026.

On the same day, the 25% additional ad-valorem tariffs imposed by the US on certain Indian exports, citing India’s imports of Russian oil, were removed.

Following the US Supreme Court judgment dated February 20, 2026, which invalidated reciprocal tariffs, such tariffs are no longer in force. The US government has since issued executive orders imposing 10% tariffs under Section 122 of the Trade Act of 1974 on certain products from all countries. India has said it remains engaged with the US for a mutually beneficial trade agreement.

Also read: India–US interim trade pact: What the joint statement says on tariffs

Sources added that the US is attempting to reshape the global tariff architecture, and both sides are negotiating to finalise the details. The agreement is likely to be signed once the new global tariff framework is in place.

They explained that countries are entering agreements based on comparative advantages or disadvantages vis-à-vis their partners, and India is also positioning its deals to ensure a competitive edge.

The minister also held bilateral meetings with his counterparts from China, the Netherlands, France, and Ethiopia to discuss ways to deepen trade ties.