In India-New Zealand FTA, A Hint On Indo-US Trade Deal; Piyush Goyal Drops A Clue

India is in advanced discussions with the United States on a bilateral trade agreement, Union Commerce and Industry Minister Piyush Goyal said on December 22, offering a strong signal of momentum in long-pending negotiations even as New Delhi concluded a major free trade pact with New Zealand.

Briefing the media in New Delhi after the conclusion of the India–New Zealand Free Trade Agreement (FTA), Goyal said, “We are already at an advanced stage in our discussions with the US.” His remarks followed a recent visit by a US delegation led by Deputy Trade Representative Rick Switzer, which held a two-day review of trade negotiations that concluded on December 11.

The India–US talks are focused on finalizing the first tranche of a Bilateral Trade Agreement (BTA), amid heightened urgency due to elevated tariffs imposed by the US on certain Indian goods. Duties of up to 50 percent have weighed on exporters, even as the US continues to be India’s largest export destination, accounting for nearly 18 percent of total outbound shipments. Trade experts say resolving tariff-related concerns will be central to closing the initial phase of the deal.

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While the US has sought duty concessions on agricultural products such as almonds, corn and apples, India has remained firm on protecting sensitive sectors, particularly agriculture and dairy, citing the interests of farmers and MSMEs. Negotiations for the pact were formally launched in February, with six rounds of talks completed so far. The broader ambition is to more than double bilateral trade to USD 500 billion by 2030, from about USD 191 billion currently.

Backing Goyal’s comments, Commerce Secretary Rajesh Agrawal recently said India is “very close” to finalising an initial framework deal with the US to lower reciprocal tariffs, adding that an interim arrangement could be reached without committing to a specific timeline.

Goyal also underlined India’s expanding engagement with Western economies, noting that New Zealand is the third member of the Five Eyes grouping with which India has signed an FTA, after Australia and the UK. “We will soon begin discussions on the terms of reference with Canada also,” he said, adding that this reflects India’s growing strategic importance globally.
Under the India–New Zealand FTA, India will secure 100 percent duty-free access for goods and expanded entry into 118 services sectors, including IT, telecom, tourism and construction. The pact also offers Indian pharmaceutical companies faster approvals and mutual recognition of good manufacturing practices, with both sides expecting bilateral trade to double over the next five years.