India and US to Conclude Talks on Proposed Trade Pact

India and officials from the United States have scheduled a wrap-up session for Saturday morning to finalize discussions after three days of talks regarding a proposed bilateral trade agreement. Government sources indicate that these discussions are still in the early stages.

A delegation of US officials, led by Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is currently in New Delhi to negotiate the potential agreement. Sources noted that while discussions are ongoing, no final agreements have been reached as of yet.

On Thursday, India's Commerce and Industry Minister, Piyush Goyal, remarked that the negotiations between India and the United States are moving along positively and aim to benefit both nations while safeguarding India's interests.

This dialogue comes at a time when geopolitical tensions are present, particularly given the announcement from US President Donald Trump regarding reciprocal tariffs on major trading partners, including India. Trump has repeatedly claimed that India maintains high tariffs on American goods, heightening the urgency of the discussions.

Significantly, the US has already applied tariffs on imports from China and has imposed higher duties on steel and aluminum from March 12. Additionally, a 25% tariff on completely built vehicles and auto parts is set to take effect on April 3.

The proposed trade agreement is ambitious, with both nations aiming to complete the first phase by the fall of 2025. They also aspire to more than double bilateral trade to $500 billion by the year 2030, up from the current level of over $190 billion.

The United States has sought trade concessions in several areas, including industrial goods, automobiles, wine, petrochemical products, and agricultural items such as apples and tree nuts. Conversely, India might explore reducing tariffs in labor-intensive sectors such as textiles.

Industry representatives in India have expressed concerns about potential impacts from US tariffs, urging the government for protective measures as the US is India's largest trade partner. Recently, India made efforts to reduce import duties on certain products, reflecting its intentions to ease trade tensions.

In response to US pressures, India slashed import duties on bourbon whiskey from 150% to 100%, and it has lowered tariffs on various wine categories. Additionally, duties on motorcycles and synthetic flavoring essences have been adjusted to potentially benefit American exports.

Despite the talks, there are challenges ahead. The US is keen on gaining access to India's agricultural market, which remains a politically sensitive issue for India. In 2024, US agricultural exports to India amounted to $1.6 billion, with almond exports alone accounting for significant value.

In a broader context, in 2023-2024, the US emerged as India’s largest trading partner, with total bilateral trade reaching $119.71 billion. India’s exports to the US include pharmaceuticals and telecom instruments, while the US imports include crude oil and electrical machinery.

The ongoing negotiations between India and the US highlight the complexity and significance of international trade relations. The outcome of these discussions could shape trade policies and economic interactions between these two countries moving forward.

India, US, Trade