(MENAFN- KNN India) New Delhi, Sep 2 (KNN) Commerce Minister Piyush Goyal said on Tuesday that India is holding talks with the US on a proposed bilateral trade agreement (BTA), amid rising tensions over the doubling of tariffs on Indian goods.

Speaking at an industry chamber event in New Delhi, Goyal said "We are in dialogue with the US for a BTA."

He also highlighted India's broader trade outreach, citing new or ongoing negotiations with the European Union, Chile, Peru, New Zealand, Australia, and Oman, alongside concluded deals with the EFTA bloc, the UK, and the UAE.

“Lots have happened and lots more to go,” he said, adding that India contributes about 18 percent to global growth.

The push for a BTA comes against the backdrop of a steep US tariff hike. On August 27, the US imposed an additional 25 percent duty on Indian exports, raising the total levy to 50 percent on certain goods.

US officials linked the measure to India's continued purchases of Russian oil and defence equipment, which they argue indirectly support Moscow's war effort in Ukraine.

The tariff escalation disrupted trade negotiations that had been underway for months.

The sixth round of talks, scheduled in New Delhi on August 25, was cancelled after the new duties were announced.

Officials have indicated that resolving tariff issues will be critical before negotiations can resume. The BTA, if concluded, is aimed at more than doubling bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.

The US has pressed India to lower tariffs on agricultural products such as corn, soybeans, apples, almonds, and ethanol, and to expand market access for dairy products, but India has resisted, arguing such measures could hurt small and marginal farmers.

Meanwhile, US President Donald Trump signaled some flexibility in remarks on Monday, saying India had offered to cut tariffs to 'nothing' following the latest duty hike.

“They should have done so years ago,” Trump wrote in a Truth Social post, though he did not specify when the offer was made or whether formal talks will resume.

(KNN Bureau)

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