India and US Eye “Early Wins” :
India and Us ( United States ) are strategically focusing on identifying opportunities for “early mutual wins” as they move closer to finalizing a comprehensive Bilateral Trade Agreement (BTA). This forward momentum is highlighted by the upcoming schedule of in-person sectoral-level discussions set to begin by the end of May.
The push for early positive outcomes is part of the broader negotiations aimed at concluding a multi-sector BTA by the Fall of 2025. This follows extensive recent engagements, including detailed discussions held between India’s Department of Commerce and the Office of the US Trade Representative in Washington D.C. from April 23rd to 25th, which built upon previous meetings in New Delhi in March 2025.
These recent rounds covered a wide array of topics, including both tariff and non-tariff matters, with the aim of preparing the ground for the initial stages of the agreement and securing benefits that can be realized relatively quickly across different sectors. While expert-level consultations have been conducted virtually, the move to in-person sectoral talks signals a deeper phase of negotiations.
The ongoing dialogue is firmly aligned with the objectives set out in the Leaders’ Statement of February 2025, which underscored the commitment to strengthening India-US economic ties and enhancing supply chain collaboration through the BTA framework.
Adding to the positive outlook, the US Treasury Secretary recently commented favorably on the progress, suggesting that India might be the first country to sign a trade deal with the US among several nations currently in negotiations. He noted that negotiating with India is comparatively easier due to its transparent system of high tariffs, which are more direct to address than complex non-tariff barriers.
Reports suggest potential areas for reciprocal concessions, with India possibly reducing taxes on certain US agricultural products like almonds and pistachios. In return, New Delhi is seeking lower duties from the US on key Indian exports such as automobile parts and essential medicines. While the US has raised concerns about non-tariff barriers like digital content localization and telecom equipment certification, these are expected to be addressed in later stages of the negotiations.
There is also optimism that the first segment of the proposed BTA could be concluded well before the Fall 2025 target, especially after the terms of reference for the pact were signed by both countries in April.
This BTA is a crucial component of “Mission 500,” an ambitious initiative aiming to more than double the bilateral trade between India and the US to an impressive $500 billion by 2030. Currently, the US holds the position as India’s top export destination and its fourth-largest source of imports, with India ranking as the tenth largest exporter to the US, valued at $91 billion in 2024.
The upcoming in-person sectoral talks represent a critical phase in realizing the potential for enhanced trade and economic partnership between India and the United States.
Source – Fieo
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