India-US Trade Agreement

India-US Trade Agreement: According to the US Treasury Secretary, India could soon become the first country to sign a bilateral trade agreement (BTA) with the United States.

• India-US Bilateral Trade Agreement (BTA)

o India and the U.S. have agreed to negotiate a multi-sector BTA by fall 2025.

o The BTA was mentioned in the February 13, 2025, Joint Leaders Statement.

o Both countries are WTO members, so the agreement must comply with WTO trade laws.

o The Most Favoured Nation (MFN) principle limits preferential treatment unless specified by WTO rules.

o The agreement could affect tariff rates, market access, and trade volumes between India and the U.S.