In a significant development for global trade, India and the United States will begin a fresh round of three-day discussions from April 23 in Washington to negotiate a long-pending bilateral trade agreement (BTA). This comes amid a 90-day tariff suspension window announced by the Trump administration, offering both countries a chance to strike a “win-win” interim deal.
What’s on the Table?
The talks will cover 19 key chapters under the Terms of Reference (ToRs) including:
- Tariffs & Non-Tariff Barriers
- Rules of Origin
- Customs Facilitation
- Goods & Services
- Regulatory Cooperation
Indian negotiators, led by Rajesh Agrawal, Additional Secretary in the Department of Commerce and future Commerce Secretary, will meet US officials to push forward negotiations and bridge gaps.
Why Now?
The 90-day tariff pause, announced by President Trump on April 9, followed sweeping duties imposed earlier this month—26% on Indian imports being one of them. With tariffs now paused till July 9, the two sides are keen to finalize the first phase of the deal by fall (Sept-Oct).
“We want to utilise this tariff truce effectively and close the deal as soon as possible,” said India’s Commerce Secretary Sunil Barthwal.
What’s at Stake?
- US Concessions May Include:
Industrial goods, EVs, wines, dairy, apples, tree nuts, alfalfa hay, petrochemicals - India’s Concessions May Include:
Labour-intensive sectors like textiles, leather, gems, jewellery, plastics, shrimp, and chemicals
India’s Trade Snapshot with the US (2024-25)
- Total Trade: $131.84 billion
- Exports to US: $86.51 billion (↑11.6%)
- Imports from US: $45.33 billion (↑7.44%)
- Trade Surplus: $41.18 billion
Top Indian Exports:
💊 Drug formulations, 📡 telecom instruments, 💎 precious stones, 🛢️ petroleum, 👗 garments, 🧱 iron & steel
Top US Exports to India:
🛢️ Crude oil, 🛩️ aircraft, 🧊 coal, 💻 electronics, 💎 diamonds, 💰 gold
What’s Next?
The April 23 talks are being seen as the most significant since March, with both nations aiming to create a comprehensive roadmap. US trade official Brendan Lynch’s recent India visit in March helped set the stage for these in-person deliberations.
If the negotiations go well, this deal could reshape India-US trade relations, ease supply chains, and accelerate the push to $500 billion in bilateral trade by 2030.
