India and the United States are close to finalising the first tranche of their proposed Bilateral Trade Agreement (BTA), focusing on resolving reciprocal tariff issues. Commerce Secretary Rajesh Agrawal announced this development on Monday while releasing the October trade data. He stated that virtual negotiations have been ongoing for several months and that the initial phase of the agreement is progressing swiftly.

Agrawal mentioned, "The part relating to reciprocal tariffs should happen sooner rather than later," although he did not specify a firm deadline for completion. The BTA, proposed in February, aims to significantly increase bilateral trade from the current USD 191 billion to USD 500 billion by 2030. The discussions were initiated during Prime Minister Narendra Modi's visit to Washington earlier this year.

Despite recent tariff escalations by the U.S., including a 50% tariff on Indian goods due to India's oil imports from Russia, negotiations have continued. U.S. President Donald Trump has expressed optimism about strengthening U.S.-India relations, indicating that a trade agreement could be signed soon. He stated, "I think we’re pretty close to doing a deal (with India) that’s good for everybody."

Commerce Minister Piyush Goyal has assured that India will not compromise on the interests of farmers and workers in any trade agreements. He noted that the timing of the deal depends on mutual readiness, saying, "The trade deal can happen tomorrow, it can happen next month, it can happen next year."

In a related development, India has begun increasing its imports of oil and gas from the U.S. to address the trade surplus issue. On Monday, Minister of Petroleum and Natural Gas Hardeep Singh Puri announced a significant contract for importing LPG from the U.S., marking a historic step in trade relations. This contract will see India import around 2.2 million tonnes of LPG annually, representing nearly 10% of its total LPG imports.

Overall, the ongoing discussions and agreements signal a potential thaw in trade relations between the two nations, with both sides keen on achieving a balanced trade framework.