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India and the United States are close to finalising the first phase of their ambitious Bilateral Trade Agreement (BTA). Negotiators from both countries are ironing out the language of the agreement, with positive progress reported on outstanding issues, according to Zee Business sources.

The agreement is not yet finalised, and India’s tariff rates remain at their highest since August. So far, no new issues have emerged, and concessions are expected on Section 232 items.

Sources told Zee Business that this is not a conventional free trade agreement (FTA) negotiation, as reciprocal tariffs are not based on WTO norms, and confidentiality prevents the two sides from publicly detailing the agreement framework.

On Thursday, negotiators from India and the US held a virtual discussion. Since March, five rounds of talks have been completed for the first phase of the bilateral trade agreement, which was expected to be inked by the "fall of 2025."

The BTA, formally proposed in February following directives from the leaders of both nations, aims to more than double trade volumes from the current USD 191 billion to USD 500 billion by 2030.

Commerce and Industry Minister Piyush Goyal visited the United States last month, leading high-level trade negotiations. He was accompanied by senior ministry officials, including Special Secretary and India’s Chief Negotiator, Rajesh Agrawal.

In mid-September, a team of US officials led by Assistant US Trade Representative for South and Central Asia Brendan Lynch held “positive and forward-looking” discussions with India’s Department of Commerce. Both sides agreed to intensify efforts for an early conclusion of a mutually beneficial trade agreement.

Over recent months, India and the US have been negotiating an interim trade deal. The Indian side has expressed reservations over US demands to open agricultural and dairy sectors, which are critical to the livelihoods of millions of people in India.

Earlier, US President Donald Trump had imposed 25 per cent tariffs on Indian goods starting August 1. A few days later, he added another 25 per cent tariff, bringing the total to 50 per cent, citing India’s continued imports of Russian oil. These measures come amid a broader strategy of reciprocal tariffs on countries with which the US has a trade deficit.