India-US Trade Negotiations 'Completely On-Track', FTA with Oman Just Weeks Away

Union Commerce and Industry Minister Piyush Goyal on Tuesday said India’s free trade agreement (FTA) with Oman is only weeks away from being finalised. He added that talks with the United States on a bilateral trade arrangement (BTA) are also making steady progress.

Speaking at the FICCI Leads 2025, where Pankaj Khimji, Adviser for Foreign Trade and International Cooperation at Oman’s Ministry of Commerce, Industry and Investment Promotion, was present alongside other dignitaries, Goyal stressed the pace of negotiations.

"Khimji has to deliver the Oman FTA in weeks. We are in active dialogue with the United States and New Zealand. With Qatar, I will finalise the terms of reference in the first week of October,” the minister said.

India and the US are working towards concluding the first tranche of their BTA by October. Earlier concerns arose after US President Donald Trump imposed an additional 25% penalty on some Indian exports, taking the total "reciprocal tariff" rate to 50%.

Relations between the trade partners had come under strain after US President Donald Trump imposed additional tariffs of 25% on some Indian imports citing India's Russian oil purchases, following 25% tariffs levied during his Liberation Day announcements. This had taken the effective rate of interest on Indian imports to 50%, among the highest rates levied by the US.

Amid these tensions, the US also postponed a meeting scheduled to start from August 25 with India.

However, a senior government official has clarified that discussions with Washington remain “completely on track”. Both sides are now expected to meet by October. 

The US is India’s largest export destination, with bilateral trade touching $131.84bn in the last financial year. India’s merchandise exports to the US stood at a record $86.5bn, resulting in a trade surplus of $41.18bn.

Goyal also confirmed that Maroš Šefčovič, the European Commissioner for Trade and Economic Security, is in New Delhi for further talks on the proposed trade agreement with the European Union (EU).

“India aspires to be part of the developed world, working closely with friendly nations where we share aligned interests, and building sustainable, win-win partnerships,” he said.

On the agreement with the European Free Trade Association (EFTA), the minister noted that it is expected to generate $100bn in investments over the next 15 years. He said the deal would serve as a catalyst by combining debt, domestic capital and a supportive ecosystem, ultimately leading to an estimated $500bn in overall investments.