India-U.S. proposed commerce pact’s phrases of reference contains about 19 chapters: Sources

The phrases of references (ToRs) finalised by India and the U.S. for the proposed bilateral commerce settlement embody round 19 chapters protecting points resembling tariffs, items, non-tariff obstacles, and customs facilitation, official sources stated.

To present additional impetus to the talks within the 90-day tariff pause window, an Indian official group will likely be visiting Washington subsequent week to iron out variations on sure points earlier than formally launching negotiations for the proposed India-U.S. bilateral commerce settlement (BTA).

India’s chief negotiator, Further Secretary within the Division of Commerce Rajesh Agrawal, will lead the group for the primary in-person talks between the 2 international locations. Mr. Agrawal was appointed as the following commerce secretary on April 18. He’ll assume workplace from October 1.

The three-day Indian official group’s talks with the U.S. counterparts in Washington will begin from Wednesday (April 23, 2025).

“Either side will focus on the extent of ambition. The ToRs will likely be additional developed and mentioned. What would be the pathway for talks? The ToRs will embody points like tariffs, non-tariff obstacles, guidelines of origin, and regulatory issues,” the official stated, including normal contours of the pact will likely be mentioned, apart from scheduling, in order that issues may be finalised in 90 days.

The three-day deliberations assume significance, as a senior Authorities official had earlier stated that an interim commerce settlement between India and the U.S. may very well be finalised within the 90-day tariff pause introduced by the Trump administration if it’s a “win-win” for each side.

In worldwide commerce parlance, the extent of ambition refers back to the extent to which two international locations are keen to decide to particular commerce liberalisation measures.

The go to additionally follows senior official-level talks held between the 2 international locations final month in Dehli.

Brendan Lynch, the Assistant U.S. Commerce Consultant for South and Central Asia, was in India from March 25 to 29 for essential commerce discussions with Indian officers.

The 2 sides are eager to utilise the 90-day tariff pause, introduced by U.S. President Donald Trump on April 9, to push the talks.

On April 15, Commerce Secretary Sunil Barthwal had said that India will attempt to shut the negotiations as rapidly as doable with the U.S.

India and the U.S. have been engaged in negotiating a bilateral commerce settlement since March. Either side have focused to conclude the primary section of the pact by the autumn (September-October) of this yr, with an purpose to greater than double the bilateral commerce to $500 billion by 2030, from about $191 billion, at the moment.

In a commerce pact, two international locations both considerably cut back or eradicate customs duties on the utmost variety of items traded between them. Additionally they ease norms to advertise commerce in companies and increase investments.

Whereas the U.S. is taking a look at obligation concessions in sectors like sure industrial items, cars (electrical automobiles significantly), wines, petrochemical merchandise, dairy, and agriculture objects resembling apples, tree nuts, and alfalfa hay; India could have a look at obligation cuts for labour-intensive sectors like apparels, textiles, gems and jewelry, leather-based, plastics, chemical substances, oil seeds, shrimp, and horticulture merchandise.

From 2021-22 to 2024-25, the U.S. was India’s largest buying and selling associate.

The U.S. accounts for about 18% of India’s whole items exports, 6.22% in imports, and 10.73% in bilateral commerce.

With America, India had a commerce surplus (the distinction between imports and exports) of $41.18 billion in items in 2024-25. It was $35.32 billion in 2023-24, $27.7 billion in 2022-23, $32.85 billion in 2021-22 and $22.73 billion in 2020-21. The U.S. has raised considerations over the widening commerce deficit.

To deal with the hole and increase manufacturing, the Trump administration introduced sweeping tariffs on April 2, together with 26% on India. It was later suspended for 90-day until July 9.

In 2024, India’s most important exports to the U.S. included drug formulations and biologicals ($8.1 billion), telecom devices ($6.5 billion), valuable and semi-precious stones ($5.3 billion), petroleum merchandise ($4.1 billion), gold and different valuable metallic jewelry ($3.2 billion), ready-made clothes of cotton, together with equipment ($2.8 billion), and merchandise of iron and metal ($2.7 billion).

Imports included crude oil ($4.5 billion), petroleum merchandise ($3.6 billion), coal, coke ($3.4 billion), minimize and polished diamonds ($2.6 billion), electrical equipment ($1.4 billion), plane, spacecraft and components ($1.3 billion), and gold ($1.3 billion).