The ToRs are “broad-based” giving “wide scope” to both parties to negotiate an “ambitious, mutually beneficial, multi-sector BTA” (bilateral trade agreement) that would help to enhance the two-way trade to $500 billion by 2030 from the current level of about $200 billion, two of the people added, requesting anonymity. They, however, declined to divulge specific details of the ToRs because of a non-disclosure agreement (NDA).

ALSO READ | ‘Can’t compromise national interest for US trade deal deadline,' says Union minister

“We are progressing well on the BTA negotiations and we expect to be ready with the first tranche of BTA before the fall of 2025. Possibly, the two countries would sign an early harvest deal where tariff and non-tariff issues will be addressed for greater market access. It will be followed by other complex issues such as protection to intellectual property (IP) and government procurement,” one of them said.

Hindustan Times on Friday reported that India and the US are negotiating the first tranche of the BTA through a fast-track mechanism and expected to arrive at some tangible outcomes over the next 90 days. Washington has suspended an additional 16% (10% baseline tariff for all countries kicked in on April 2) reciprocal tariffs for India till July 9, 2025.

Immediately after they agreed on the broad contour (or ToRs) for negotiating a BTA, the two partners started sectoral negotiations without delay, the second person said.

ALSO READ | India considers gold, silver imports from US to bridge trade deficit

India and the United States on March 29 concluded the first round of face-to-face trade negotiations that started on March 26 in New Delhi. From the US side, the meeting was led by Assistant US Trade Representative Brendan Lynch ; Additional Secretary Rajesh Agrawal-led the team of Indian officials. The talks took place in a friendly and cordial atmosphere with shared purpose to reach an agreement soon, by September this year, as per the vision of the two leaders, the people cited in the first instance said.

On February 13, Prime Minister Narendra Modi and President Donald Trump resolved to deepen the US-India trade relationship to promote growth that ensures fairness, national security and job creation, leading to boost total bilateral trade from about $200 billion to $500 billion by 2030 (Mission 500). In order to achieve that they decided to negotiate the first tranche of a “mutually beneficial, multi-sector bilateral trade agreement (BTA) this year.

The New Delhi bilateral trade talks was a follow up of Union commerce minister Piyush Goyal’s visit to Washington from March 4-6, during which he met his American counterparts – US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Subsequently, there have been several video conferences between officials of the two sides.