Jaishankar Confirms India, US to Finalize Bilateral Trade Agreement by Fall 2025

EAM S Jaishankar highlights progress in energy, defence, and tech talks while defending India’s decision to stay out of RCEP

New Delhi, March 26:
External Affairs Minister S. Jaishankar has confirmed that India and the United States are working toward finalizing a landmark Bilateral Trade Agreement (BTA) by fall 2025, following a “very open and intense discussion” between Prime Minister Narendra Modi and former US President Donald Trump earlier this year.

Speaking at an event hosted by the Asia Society in Delhi on Wednesday, Jaishankar reflected on the evolving Indo-US relationship, touching upon trade, energy, defence, and tech cooperation. He also emphasized that the agreement in progress is not a free trade deal but a more focused bilateral pact.

“We had very active discussions in Washington in February. We saw a president who was far more open about defence cooperation, technology sharing, and building a substantial strategic partnership,” Jaishankar said. “As a result, PM Modi and President Trump agreed to conclude a bilateral trade agreement by the fall of this year.”

Energy & Tech: Strategic Focus Areas

The EAM stressed the importance of energy security, noting that India was keen to expand LNG imports from the US, describing America as a “stable supplier.” He also highlighted mutual interests in the technology sector, especially around BigTech, talent mobility, and trusted digital infrastructure.

“There’s an understanding that the success of BigTech is essential to ‘Make America Great Again.’ We had positive discussions on creating reliable supply chains and transparent partnerships,” Jaishankar added.

Defence and Trade Synergies

Touching upon defence ties, Jaishankar said President Trump showed personal interest in fast-tracking technology transfer, clearing bureaucratic roadblocks that often hinder strategic procurement.

“We expect a higher-quality defence relationship as a result,” he stated.

On trade tariffs, particularly automobile imports, Jaishankar acknowledged US concerns, citing Trump’s criticism of India’s high import duties. However, he emphasized that current discussions aim to create a win-win pathway.

India’s RCEP Stand: A Calculated Move

Jaishankar also revisited India’s decision to opt out of the Regional Comprehensive Economic Partnership (RCEP), defending the move as essential to protecting Indian industry from unfair competition.

“We repeatedly raised concerns about import surges backed by subsidies and non-market practices. When our apprehensions were not addressed, we walked away,” he said. “Today, there is a broader consensus that not joining RCEP was a wise decision for India.”

According to Jaishankar, RCEP’s rules of origin lacked verification mechanisms, posing a serious threat of economic hollowing out from trade imbalances with East Asian economies.

Looking Ahead

Jaishankar confirmed that trade negotiations between India and the US are ongoing. “Minister Piyush Goyal’s recent US visit laid the groundwork. Since then, discussions have been continuing virtually,” he said, reiterating optimism about sealing the deal.

If concluded as expected, the India-US Bilateral Trade Agreement could mark a significant pivot in global economic diplomacy amid shifting geopolitical alignments.