India Poised to Advance Trade Pact with U.S.; FDI Inflows Remain Strong, Says Piyush Goyal

India and the U.S. are moving closer toward finalizing a bilateral trade agreement (BTA). Following a four-day negotiation round in New Delhi, led by Indian lead negotiator Rajesh Agrawal and senior U.S. Trade Representatives, both sides reported significant progress on an interim deal, set to address tariff cuts and market access by month’s end.

Commerce Minister Piyush Goyal emphasized India’s readiness to start with less contentious, low-hanging issues—like digital trade facilitation, certain agricultural commodities, and tariff adjustments—as a phased approach toward a broader agreement. Goyal explained, “It is not necessary to wait for everything… low-hanging fruits should be captured first,” quoting the successful interim Australia deal as precedent.

Parallel Progress on EU FTA, Positioning India as a Trusted Trade Partner

Goyal highlighted rapid developments not just with the U.S., but also in negotiations with the European Union. He stated India is “really very near” to concluding a comprehensive FTA with the EU, signaling strong political backing and strategic alignment in global trade engagements.

FDI Inflows Remain Robust Amid Global Headwinds

When questioned about foreign investment trends, Goyal affirmed that India is not witnessing any structural decline in FDI inflows. He highlighted a 143% increase in FDI over the past eleven years—totaling US $748.78 billion from 2014–25 as compared to US $308.38 billion in 2003–14.

In the 2024–25 financial year, FDI inflows reached approximately US $81 billion, the highest in three years, with Singapore, the U.S., the Netherlands, and the UAE among the top sources. Goyal stressed that any short-term fluctuations are primarily linked to global interest rate trends, not a sign of domestic weakness.

Government Open to FDI-Boosting Measures

Goyal reinforced that the Indian government remains open to fresh policy suggestions to further enhance FDI inflows. He urged global businesses to utilize platforms like the EFTA desk at Invest India, reflecting a proactive stance to attract diversified investments across sectors.

Why It Matters

• Economic impact: A swift interim BTA can help shield Indian exporters from rising U.S. tariffs and deepen trade in sectors like agriculture, energy, and digital services.

• Investment confidence: Sustained high FDI indicates India’s stability as an investment destination amid global volatility.

• Strategic positioning: Simultaneous progress with both the U.S. and EU underscores India’s global trade aspirations and potential in the Indo-Pacific region.

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