India and guest US officials decided to organize packaging on Saturday (March 29, 2025) to make packaging for three -day interviews on the proposed bilateral trade agreement, government sources said.
They said the discussions are in a “very” early phase.
A team of American officials, headed by an assistant to the US sales representative for South and Central Asia Brendan Lynch, is in the new Delhi for negotiations on the proposed agreement.
“The initial phase of the discussion is going on,” one of the sources said, adding that nothing has been completed yet.
The Minister of Commerce and Industry Piyush Goyal said on Thursday that ongoing interviews between India and the US for the proposed pact will proceed “well” and will be for the “good” of both nations and at the same time protect the interests of India.
Official negotiations at the level assumes importance because US President Donald Trump has announced that on April 2 on the key business partners of America, including India, he ordered mutual tariffs.
He said on several forums that India stored high tariffs. The US has already imposed duties in China.
In addition, on steel and aluminum since March 12, higher import obligations are stored 255. March 26, Mr. Trump, announced a 25% tariff on a completely built vehicles (CBU) and automatic part, which is a step that will appear on April 3.
The tariffs are imported obligations imposed and collected by the Government and paid by companies for bringing foreign goods to the country.
India and the US seek to close the first phase or tranches of the agreement by the autumn of 2025 (September-October). By 2030, they also set a target for more than two two -sided trade at $ 500 billion from the current more than $ 190 billion.
While the US demanded concessions in sectors such as certain industrial goods, cars, wines, petrochemical products, agricultural objects such as apples, tree nuts and hay; India can look at cuts for work -intensive industries such as textiles.
Indian industry and exporters asked the government to protect them from the US mutual tariff. They sought an exception to these tariffs because they would seriously hurt them because the US is the largest Indian business partner.
In the middle of pressure from the US India in February reduced import obligations for bourbon whiskey from 150% to 100% and reduced tariffs to certain wine varieties. The obligation of wines made of fresh grapes, vermouth, some other fermented beverages and nauseous ethyl alcohol with 80% strength was reduced to 100%.
Reducing customs duties announced in products such as motorcycles and essences of synthetic flavors would also benefit American exports.
India has also recently announced scrap of the leveling fee on technology giants such as Google.
Digital Services Company Reliance Industries sisters the platforms LTD and Bharti Airtel signed an agreement with SpaceX to offer Starlink’s broadband internet service to their customers in India.
The US is pushing India to negotiate a large and large bilateral trade agreement while trying to open the agricultural sector for American businesses.
According to experts, India is unlikely to include agriculture in business negotiations because it is a politically sensitive sector.
Agri’s US exports to India were $ 1.6 billion in 2024. The key exports include almonds (in shell – $ 868 million); Pistachios ($ 121 million), apples ($ 21 million), ethanol (ethyl alcohol – $ 266 million).
In June 2023, India announced the removal of retaliation obligations for eight US products, including chickpeas, lenses and apples, which were stored in response to American measures to increase tariffs to certain steel and aluminum products in 2019.
In 2024, India’s Main Exports to the US Included Drug Formulations, Biological ($ 8.1 Billion), Telecom Instruments ($ 6.5 Billion), Precious and Semi-Prrecious Stones ($ 5.3 Billion), Petroleum Products ($ 4.1 Billion) Billion), Ready-Made Garmments of Cotton Including Accessories ($ 2.8 Billion), and Products of Iron and Steel ($ 2.7 billion).
Imports included oil ($ 4.5 billion), petroleum products ($ 3.6 billion), coal, coke ($ 3.4 billion), cut and polished diamonds ($ 2.6 billion), electric machines ($ 1.4 billion), aircraft, space crafts and parts ($ 1.3 billion) and USD).
In the years 2023-24, the US was the largest business partner of India with $ 119.71 billion two-sided goods trade ($ 77.51 billion exports, $ 42.19 billion, with a surplus of $ 35.31 billion trade).
India received from America in April 2000 and September 2024 $ 67.8 billion.
Published – March 28, 2025 21:43
