Three-day talks on trade pact begin today: Govt weighs relief for US feedstock, cherries

India is considering reducing customs tariffs on select US imports, like gas and farm produce, in a bid to secure concessions in regulations for its own exports. Negotiations aim to finalize the first part of a Bilateral Trade Agreement within six months, focusing initially on goods trade.

India and the US are set to increase market access and improve bilateral trade by reducing tariffs and enhancing supply chain integration. With recent progress in exporting goods under PLI schemes, India aims to strengthen its domestic production across key sectors including pharmaceuticals and electronics, while engaging in trade agreements with partners like EFTA.

The textile and apparel industry has set a target of $100 billion in exports by 2030 and proposed a five-point plan. Key measures include removing the 10% import duty on cotton fibers, launching an incentivization scheme, fast-tracking PM MITRA parks, expediting FTAs with the EU and USA, and not increasing GST rates for ready-made garments.

India is considering cutting tariffs on over half of U.S. imports worth $23 billion as part of a trade deal to avoid reciprocal tariffs from the U.S. due to take effect on April 2. The reduction, which could apply to goods subject to 5%-30% tariffs, aims to alleviate the impact of U.S. tariffs on India’s […]

India needs to be careful while negotiating a trade agreement with the US due to the lack of Fast Track Authority, which may lead to Congressional changes and demands for policy shifts, potentially affecting its sovereignty. These factors create significant uncertainty and highlight the importance of vigilance during negotiations.

Assistant US Trade Representative for South and Central Asia Brendan Lynch is in New Delhi starting Tuesday for three days of negotiations on the proposed trade deal. His visit comes ahead of the April 2 deadline for likely imposition of reciprocal tariffs on all countries, including India, by the Trump administration.

India will request an exemption from US reciprocal tariffs during trade negotiations with US officials this week. Discussions will focus on forming a bilateral trade agreement. India has already reduced some import taxes and is considering further reductions to meet US concerns.

Brendan Lynch, Assistant US Trade Representative, will visit India for crucial trade talks from March 25-29. Discussions with Indian officials aim to enhance bilateral trade and include the impending reciprocal tariffs by the US. India plans to expand trade with the US to $500 billion by 2030.

India is well-positioned to benefit from the Trump administration’s evolving worldview, with Trump valuing his relationship with Modi. The non-alignment of India aligns with Trump’s America First stance. The Quad is seen as a key strategy for Indo-Pacific policy, excluding China. The EU-China relationship is uncertain due to ongoing U.S.- EU tension.

India and the US are set to finalise the contours and terms of reference for a bilateral trade agreement during a three-day discussion starting Tuesday. The focus is on increasing trade predictability and integration, with the first phase of the agreement expected to be completed by fall 2025.