India, U.S. holding very lively and intense discussions on commerce: Jaishankar

India and the U.S. are holding “very lively” and “intense” discussions on commerce, Exterior Affairs Minister S. Jaishankar mentioned on Wednesday, because the world waits with nervousness over U.S. President Donald Trump’s reciprocal tariff that may kick in on April 2.

In an interactive session hosted by main think-tank Asia Society, Mr. Jaishankar, nonetheless, declined to pre-judge the speedy outcomes of the commerce negotiations however mentioned there’s a robust “enterprise case” for a bilateral commerce settlement (BTA) between the 2 international locations.

Following talks between Prime Minister Narendra Modi and Mr. Trump in Washington D.C. final month, the 2 sides introduced to barter the primary tranche of the BTA by the autumn of 2025.

“There’s a really lively and intense commerce dialogue occurring at this level of time,” Mr. Jaishankar mentioned at a session moderated by Kyung-wha Kang, President and CEO of the Asia Society and a former Overseas Minister of South Korea.

Brendan Lynch, the assistant U.S. commerce consultant for South and Central Asia, is presently on a five-day go to to India from Tuesday (March 25, 2025).

It isn’t instantly identified whether or not there are discussions on extending India some form of waiver when the reciprocal tariff comes into pressure early subsequent week.

On commerce, we had a really open dialogue and it’s the results of the choice by PM Modi and U.S. President Trump to have a bilateral commerce settlement by fall this yr, Mr. Jaishankar mentioned.

“I’ve each confidence that they (negotiators) will negotiate what’s the absolute best deal for us. Whereas noting the considerations, I wouldn’t prejudge the end result. I’d wait and see actually what occurs by way of our potential to achieve an understanding with the US,” he added.

The Exterior Affairs Minister mentioned this whereas responding to a query on considerations in India over opening up the long-protected agricultural market, “However I don’t consider that an issue ought to in itself be an insuperable impediment, as a result of there’s a robust enterprise case for a BTA with the U.S.,” he mentioned.

Mr. Jaishankar additionally talked about India’s ongoing discussions for separate free commerce pacts with the European Union and the UK.

These agreements are “very severe” and they’re fairly superior, he mentioned, including, “We’d like to attend and see whether or not really you may have a brand new set of very huge agreements.”

On strategic ties with the U.S., Mr. Jaishankar mentioned New Delhi is definitely anticipating a “extra substantial” and “larger high quality” defence relationship beneath the Trump administration.

“We noticed a President who’s rather more open and rather more lively by way of constructing a safety and defence partnership,” he mentioned, suggesting that the Trump administration is extra forthcoming in sharing American applied sciences with India.

Mr. Jaishankar mentioned New Delhi can also be taking a look at boosting its vitality ties with the U.S. and ensuring that there is a “steady, cheap, predictable” vitality vitality setting that’s one thing essential to India’s long-term progress and growth.

“Now, we noticed a President who clearly had an curiosity in guaranteeing that vitality availability was extra, vitality flows had been extra numerous, and that international locations like India may have extra alternative than we presently do,” he mentioned.

The Exterior Affairs Minister recalled that India began importing LNG from the U.S. many years in the past.

“However for numerous causes, the enterprise stayed at a sure degree. We now have curiosity in rising it as a result of the U.S. is a really steady provider,” he mentioned.

“So we discovered, from the vitality perspective, a really optimistic administration. I’d additionally say we had a great dialogue on the tech world,” he mentioned.

On Mr. Trump’s insurance policies, Mr. Jaishankar mentioned “Total, our evaluation was that we noticed many modifications which suited us or which indirectly shaped convergence on which we may construct upon,” he added.

The U.S. President’s tariff tussle has stoked fears of a world commerce struggle with many international locations already asserting counter-measures to cope with it.

Consistent with his “America First” coverage, Mr. Trump earlier this month introduced reciprocal tariffs on its companions and different nations that impose larger levies on imports from the U.S.

India has lowered its common utilized tariffs considerably for key developed international locations like Australia, the United Arab Emirates, Switzerland and Norway beneath just lately concluded bilateral commerce agreements.

Related negotiations are presently underway with the European Union and the UK, amongst different companions.

The continuing discussions with the U.S. ought to be seen on this context, Indian authorities sources mentioned just a few weeks again.

In its Union finances for 2025-26, India introduced its choice to decrease tariffs on Bourbon whiskey, wines, and Digital Car (EV) segments.

The choices had been seen as an try and ship a sign to the Trump administration that New Delhi is open to bringing down tariffs in particular sectors.

Washington can also be pushing New Delhi to purchase extra American oil, fuel and army platforms to convey down the commerce deficit that stands at round $45 billion in India’s favour.

The U.S. was the most important buying and selling companion of India with general bilateral commerce in items and companies amounting to $190 billion for calendar yr 2023.

Within the monetary yr 2023-24, the U.S. was the third largest supply of overseas direct funding (FDI) into India with inflows of $4.99 billion accounting for nearly per cent of complete FDI fairness inflows.