A team of US officials visited India earlier this month to discuss the proposed bilateral trade agreement (BTA), as both countries continue efforts to finalise the first phase of the deal at the earliest.

The two sides discussed customs-related issues and trade facilitation during a meeting in New Delhi last week, an official said on Tuesday.

Indian officials remain positive about the proposed mutually beneficial agreement and ruled out any disruption in negotiations following the outcome of the recent US midterm elections. They said India and the US share a consequential relationship supported by economic, political and security interests beyond trade.

Trade experts said uncertainty over Washington’s frequent trade measures and its use of tariffs as a negotiating tool had emerged as major obstacles to finalising an interim BTA. This is despite the preliminary draft of the agreement being almost ready.

India and the US issued a joint statement on February 7, outlining a framework for an interim BTA. However, the agreement remained unsigned after the US Supreme Court invalidated the legal basis for the preferential tariff mechanism offered by Washington, the experts said.

India is now waiting for a revised preferential tariff framework that ensures competitive access for its exporters compared with those from competing countries. The US government is also keen to conclude the agreement at the earliest, they added.

In September, US Ambassador Sergio Gor said both countries were working to build a “fair, reciprocal and mutually beneficial” trade relationship. “The US-India relationship stands at a historic high point. Pick any sector and the United States and India are working together on it,” Gor said at the 66th annual session of the Automotive Component Manufacturers Association (ACMA) in New Delhi. HT reported his remarks on September 3.

Gor highlighted cooperation across several sectors, including information technology, data centres, pharmaceuticals, defence sales and military exercises. He also pointed to opportunities in space cooperation, noting that NASA had invited ISRO to participate in its Moon Base programme.

India and the US began negotiating the bilateral trade agreement after Prime Minister Narendra Modi and US President Donald Trump met in Washington on February 13, 2025. In February this year, both countries announced that they had finalised a framework for an interim BTA. However, subsequent changes to the US tariff regime affected the negotiations.