- India wants preferential US tariff terms before finalizing the BTA.
- Piyush Goyal is expected to meet US Trade Representative Jamieson Greer later in September.
- India is also considering dedicated industrial parks for US-India businesses.
India is not ready to put the final details of its India US trade deal on the table just yet. Commerce and Industry Minister Piyush Goyal has made it clear that one issue needs to be settled first: Indian exporters must get a better tariff position than their competitors in the US market.
“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details,” Goyal said at a national workshop on the Leveraging FTAs Outreach program, according to ANI.
That puts the tariff question firmly at the center of the next stage of negotiations. India and the US had announced a framework for an interim agreement on reciprocal and mutually beneficial trade in February, while continuing negotiations on the broader bilateral trade agreement (BTA).
But the tariff landscape has changed since then, leading to further discussions.
For Indian exporters, the concern is not simply how much tariff they pay. It is how that rate compares with suppliers from competing economies such as Vietnam, Bangladesh, Thailand, Cambodia, Indonesia, Malaysia and Sri Lanka.
Goyal heads to the US with exporters watching
The timing of Goyal’s comments is significant because he is expected to travel to the US later in September for the G20 Trade Ministerial in Milwaukee.
The two-day meeting is scheduled to begin on September 30, with the US holding the G20 presidency in 2026. Goyal is also expected to hold bilateral discussions with US Trade Representative Jamieson Greer on the sidelines.
The two sides have already discussed several parts of the proposed BTA, including market access, digital trade, supply-chain resilience, non-tariff barriers and cooperation in strategic sectors.
During Greer’s June 22-24 visit to New Delhi, the two sides reviewed the agreement and said their negotiating teams had made substantial progress toward a deal that would be commercially meaningful for businesses, farmers, workers and consumers.
The latest position from Goyal suggests that progress alone may not be enough to close the deal. India wants the final tariff terms to give its exporters a meaningful advantage against competing suppliers.
That could matter across a wide range of industries, from pharmaceuticals and textiles to engineering goods, chemicals, automobiles and auto components.
India’s trade numbers also explain why the tariff question matters.
India’s goods exports to the US were $103.82 billion in 2025, while imports from the US were about $45.6 billion, taking total goods trade to $149.42 billion. Services trade added another $92.23 billion, with India exporting $48.67 billion in services to the US and importing $43.56 billion.
Goyal has also said India is looking to conclude more trade agreements with countries and blocs including Canada, Mexico, Chile, the Mercosur bloc, the Southern African Customs Union, the Gulf Cooperation Council and Israel.
The broader objective is to give Indian businesses more routes into overseas markets rather than relying too heavily on any single destination.
India is offering US companies something too
The trade negotiations are also taking place alongside a broader push to attract manufacturing investment into India.
Speaking at the Automotive Component Manufacturers Association of India’s annual session, Goyal said India is developing 100 plug-and-play industrial parks under the Bharat Audyogik Vikas Yojna, or BHAVYA scheme.
The Union Cabinet approved the ₹33,660-crore scheme in March to develop industrial parks with ready infrastructure aimed at speeding up manufacturing investments.
Goyal suggested that some of these parks could be structured around specific countries or industries, including potentially a dedicated US-India partnership park.
“I would like to invite certain countries to look at having enclaves in these parks,” he said, adding that one could potentially be dedicated to a US-India partnership.
He also suggested creating parks focused on specific industries, including auto components, with infrastructure designed around the needs of companies investing there.
The proposal could give the trade discussions another dimension. While India wants better access for its exporters in the US, it is also looking to make India a more convenient base for global companies seeking manufacturing capacity and resilient supply chains.
Goyal said India is separately developing 20 industrial cities to support domestic manufacturing.
He cited growing investment around manufacturing ecosystems, including Toyota’s reported purchase of about 800 acres in Maharashtra and semiconductor-related development in Dholera and Sanand in Gujarat.
The auto component industry is one area where the government sees significant room for expansion. Goyal said the sector’s international trade is already close to $50 billion, split roughly between imports and exports, and called on companies to expand their manufacturing footprint globally and move toward higher-value products.
He also urged the industry to strengthen supply-chain resilience and develop greater domestic capabilities to reduce exposure to future disruptions.
The trade deal could have consequences beyond tariffs
The government’s approach suggests that the BTA is being viewed as more than a deal about reducing duties on individual products.
For Indian exporters, preferential tariff treatment could determine how competitive their products are against suppliers from other Asian economies. For US companies, easier access to Indian industrial infrastructure could create opportunities to manufacture and build supply chains in the country.
That broader trade and investment relationship is likely to remain in focus as Goyal prepares for his US visit.
The two countries have not yet announced the final details of the BTA. For now, India’s position is clear: it wants the tariff terms to work for its exporters before it signs off on the agreement.
And with Goyal expected to meet Greer later in September, the next stage of the negotiations could determine whether that demand can be turned into a final deal.
