India-US Trade Deal: Proposed bilateral trade agreement between India and the United States (Bilateral Trade Agreement – There has been a lot of progress regarding BTA. Both the countries have finalised the Terms of Reference (ToRs) i.e. points of discussion, including 19 chapters for this agreement. This includes issues like tariff, non-tariff barriers, goods, custom procedures.
Indian delegation will go to Washington
According to news agency PTI, the first face-to-face talks between the officials of the two countries will be held in Washington from April 23 regarding this agreement. From India’s side, Additional Secretary of the Department of Commerce Rajesh Agarwal will lead this team. He has recently been appointed as the next Commerce Secretary and he will take charge from October 1.
Let us tell you that this conversation will last for three days, the aim of which is to finalize the first phase of this agreement within 90 days.
Which issues will be discussed?
The talks will focus on tariffs, non-tariff barriers, rules of origin, regulatory issues and trade rules. The direction of the talks will be decided by understanding the ToRs in detail.
According to a senior official, “This conversation is also important because the 90-day tariff moratorium period announced by the US has to be fully utilised.”
Why does America want this agreement?
According to PTI, the US wants India to reduce import duties in certain sectors such as: electric vehicles (EVs), wine, petrochemical products and dairy and agricultural products such as apples, nuts, alfalfa hay.
At the same time, India wants America to reduce duties on labour-intensive sectors like clothes, jewellery, leather, plastic, chemicals, shrimp and horticultural products.
Status of India-US trade
The total trade between India and America was $191 billion in 2024-25. Both countries are aiming to take it to $500 billion by 2030. India had a trade surplus of $41.18 billion with America in 2024-25. That is, India sold more goods to America.
What comes to India from America?
Things that India ordered from the US in 2024 include:
- Crude oil ($4.5 billion)
- Petroleum products ($3.6 billion)
- Coal and coke ($3.4 billion)
- Diamonds and Electric Machines
What did India sell to America?
The following are the main items exported from India to the US:
- Drugs and biological products ($8.1 billion)
- Telecom equipment ($6.5 billion)
- Precious stones ($5.3 billion)
- Readymade garments, jewellery and steel products
Impact of Trump administration’s tariff policy
Former US President Donald Trump had announced heavy tariffs on several countries including India on April 2, which included a tariff of up to 26% on India. However, this has been put on hold for 90 days till July 9, so that both countries can discuss an agreement.
At the same time, India’s Commerce Secretary Sunil Barthwal has said that India wants to finalize this conversation as soon as possible. If everything goes well, the first phase of the agreement can be reached by September-October 2025.