NEW DELHI: India and the United States held discussions on customs and trade facilitation in New Delhi last week after a US delegation visited the country earlier this month for talks on a proposed bilateral trade agreement, an official said on Tuesday.

The talks came as the two countries continued efforts to conclude the first tranche of the proposed agreement. Indian officials remained positive about a mutually beneficial pact and said the outcome of the recent US midterm elections would not disrupt negotiations.

At a glance

  • A US delegation visited India earlier this month for talks on the proposed bilateral trade agreement.
  • The two sides discussed customs issues and trade-facilitation measures in New Delhi last week.
  • India is awaiting a preferential tariff framework to give its exporters competitive access to the US market.
  • Trade experts said a preliminary draft of an interim agreement was nearly ready.

What happened

The US officials held meetings with their Indian counterparts in the capital last week. The discussions covered customs-related issues and steps to facilitate trade, the official said.

The meetings formed part of continuing negotiations on the first tranche of the bilateral trade agreement, or BTA. Officials did not disclose the names of the US delegation members or details of the customs measures discussed.

No date was announced for signing the first tranche. The proposed arrangement is aimed at building a reciprocal and mutually beneficial trade relationship between the two countries.

Trade experts said Washington's frequent trade measures and its use of tariffs as a negotiating tool had created uncertainty over an interim agreement. They said these factors had delayed its signing, although work on a preliminary draft had advanced.

Who said what

An Indian official said New Delhi remained positive about the proposed agreement and expected negotiations to continue despite the outcome of the recent US midterm elections.

The India-US relationship was consequential and drew strength not only from trade but also from economic, political and security considerations, the official said.

Trade experts said India wanted a preferential tariff arrangement that would give its exporters competitive market access compared with exporters from competing countries. The US government was also keen to finalise the agreement at the earliest, they said.

US Ambassador Sergio Gor said in September that India and the United States were working to build a fair, reciprocal and mutually beneficial trade relationship. Cooperation covered information technology, data centres, pharmaceuticals, defence sales and military exercises, he said.

Gor also referred to potential cooperation in space, including NASA's invitation to ISRO to participate in its Moon Base programme.

Background

India and the United States have been negotiating a bilateral trade agreement since Prime Minister Narendra Modi and US President Donald Trump met in Washington on February 13, 2025.

The two countries issued a joint statement on February 7 outlining a framework for an interim BTA. In February this year, they announced that they had finalised a framework for the interim arrangement.

Subsequent changes in the US tariff regime affected the negotiations, trade experts said. The interim agreement was not signed after the US Supreme Court invalidated the legal basis for the preferential tariff mechanism that Washington had offered, they said.

India has since been awaiting a revised preferential tariff framework that addresses the competitiveness concerns of its exporters.

Why it matters for Assam and the Northeast

The talks are part of a wider effort to strengthen India-US economic ties. An agreement on tariffs, customs procedures and trade facilitation could affect market access for Indian exporters, including businesses in Assam and the Northeast that seek to sell goods in overseas markets.

However, officials did not disclose any product-specific commitments, tariff concessions or provisions concerning the region. The impact on individual sectors will depend on the terms of the eventual agreement.

What next

India and the United States will continue negotiations on the proposed agreement, with both sides seeking an early conclusion of its first tranche.

No deadline was announced for the next round of talks or for signing the arrangement. Officials and trade experts said progress would depend on resolving issues related to tariffs and the preferential access sought by India.