Will India, US Seal Trade Deal Soon? Goyal Heads To Washington Amid Visa Row

New Delhi: Commerce and Industry Minister Piyush Goyal will travel to the United States on September 22 to lead trade negotiations. An official statement said he will be accompanied by Special Secretary Rajesh Agrawal and other senior officials. The visit aims to fast-track talks on a proposed Bilateral Trade Agreement (BTA), which both sides are keen to conclude at the earliest.

Background: Talks Gaining Momentum

The visit follows a September 16 meeting in New Delhi, where US Chief Negotiator Brendan Lynch and Rajesh Agrawal held daylong discussions. According to the commerce ministry, the deliberations were “positive” and it was agreed to intensify efforts to close a mutually beneficial deal. So far, five rounds of negotiations have been completed. Leaders of both nations had in February directed officials to finish the first tranche of the pact by fall 2025.

Key Trade Frictions

The discussions come against the backdrop of tariff barriers imposed by Washington. The US has levied a 50 per cent tariff on Indian goods, which includes a 25 per cent duty and an additional 25 per cent penalty linked to India’s purchase of Russian crude oil. These restrictions have added urgency to the talks.

H-1B Visa Shock

The visit also assumes added importance after the US administration’s sudden decision to hike the H-1B visa application fee to USD 100,000. Nasscom warned that the steep hike will hurt India’s IT services sector, disrupting business continuity and necessitating adjustments in onshore projects. This move is expected to feature in the bilateral discussions.

Trade Significance

The US is India’s largest trading partner for the fourth consecutive year. In 2024-25, bilateral trade was valued at USD 131.84 billion, with Indian exports accounting for USD 86.5 billion. Overall, the US contributes 18 per cent of India’s goods exports, 6.22 per cent of imports, and 10.73 per cent of total merchandise trade. Officials on both sides expect the proposed pact to help more than double trade volumes to USD 500 billion by 2030, from the current USD 191 billion.

Past Engagements

Minister Goyal last visited Washington in May, when he held discussions with US Commerce Secretary Howard Lutnick. With momentum building and deadlines approaching, the September 22 talks are expected to be crucial in shaping the trajectory of India–US trade ties.