India, US to carry sector-specific talks to finalize commerce pact in coming weeks

India and the US have determined to carry sector-specific talks within the coming weeks to finalize the construction of the proposed bilateral commerce settlement (BTA).
This choice comes after 4 days of discussions between senior officers from each international locations, which concluded on Saturday. The talks happen within the context of the USA’s risk to impose reciprocal tariffs on key buying and selling companions, together with India, by April 2, in response to information company PTI.
The Ministry of Commerce said that these expert-level engagements will start nearly within the coming weeks, paving the best way for an in-person negotiation spherical quickly after. Either side goal to comprehend a mutually useful, multi-sector BTA, with the aim of finalizing its first tranche by fall 2025 (August-September).
The proposed settlement seeks to extend market entry for items, scale back tariff and non-tariff boundaries, and improve provide chain integration between the 2 international locations.
A US delegation, led by Assistant US Commerce Consultant for South and Central Asia Brendan Lynch, visited India to finalize the phrases of the proposed pact, which goals to greater than double bilateral commerce to USD 500 billion by 2030. The 2 sides expressed their dedication to finalizing the BTA within the coming months, making certain that the settlement aligns with shared targets of prosperity, resilience, and mutual profit.
The discussions are a continuation of Commerce and Industries Minister Piyush Goyal’s go to to Washington from March 4-6, the place he met with US Commerce Consultant Jamieson Greer and Commerce Secretary Howard Lutnick. As well as, video conferences had been held between each events to comply with up on the talks.
On Friday, US President Donald Trump referred to Prime Minister Narendra Modi as “a really good man” and emphasised that tariff talks would “work out very effectively between India and our nation.” Trump’s remarks are vital given his criticism of the excessive tariffs charged by India and different international locations on American items. He has threatened to impose reciprocal tariffs on buying and selling companions, together with India, beginning on April 2.
In a commerce pact, two international locations usually scale back or get rid of customs duties on most items traded between them, ease commerce norms for providers, and enhance investments.
The US has demanded obligation concessions in sectors reminiscent of industrial items, cars, wines, petrochemical merchandise, dairy, and sure agricultural objects like apples, tree nuts, and alfalfa hay. India is more likely to give attention to obligation cuts in labour-intensive sectors reminiscent of textiles, though its negotiators are unlikely to incorporate dairy and agriculture in commerce discussions as a result of political sensitivity in India.
Indian exporters and business teams have expressed concern that the USA’s reciprocal tariffs may hurt their pursuits, because the US is India’s largest buying and selling companion. There are additionally requires India to hunt exemptions from these tariffs to mitigate the potential impression.
India’s exports to the US embody drug formulations, telecom devices, valuable stones, petroleum merchandise, and ready-made clothes. In the meantime, India’s primary imports from the US embody crude oil, petroleum merchandise, coal, reduce and polished diamonds, plane, and equipment.
In 2023-24, the US was India’s largest buying and selling companion, with a complete bilateral commerce of USD 119.71 billion in items, together with USD 77.51 billion in exports and USD 42.19 billion in imports, leading to a commerce surplus of USD 35.31 billion. Moreover, the US has been a serious supply of international direct funding (FDI) for India, with USD 67.8 billion in investments acquired from the US between April 2000 and September 2024.