India, US trade: Early mutual wins, in-person sectoral talks to begin May-end

By Admin

30 Apr, 2025

In a significant step toward strengthening economic ties, India and the United States are preparing to initiate in-person sectoral negotiations by the end of May 2025. This move is part of a broader effort to conclude the first phase of the proposed Bilateral Trade Agreement (BTA) between the two nations by the Fall of 2025, aiming for "early mutual wins" that will pave the way for deeper cooperation.

Fruitful Talks Lay the Groundwork

Last week, the chief negotiators from both sides wrapped up a three-day round of discussions in Washington, which the Indian Commerce and Industry Ministry described as “fruitful.” The talks covered a wide array of issues, including tariff and non-tariff barriers, and charted a roadmap for the upcoming negotiations.

These meetings follow a series of productive virtual and in-person engagements, including earlier discussions held in New Delhi in March 2025 and the most recent round in Washington from April 23-25.

Shared Vision: Doubling Trade to $500 Billion

The bilateral efforts are closely aligned with the Leaders’ Statement of February 2025, reflecting a shared vision to enhance economic ties and integrate supply chains. A key goal under the BTA is to more than double bilateral trade to $500 billion by 2030. The finalisation of the terms of reference has set the stage for formal negotiations — notably, the first such framework under the Trump administration 2.0.

Sectoral Priorities and Trade Objectives

For the US, the objectives include greater market access, reduced tariffs, and a strong set of commitments that offer long-term trade benefits. Specifically, Washington seeks duty concessions on industrial goods, automobiles, petrochemicals, wine, dairy, apples, nuts, and alfalfa hay.

India, on the other hand, is pushing for tariff reductions on labour-intensive sectors, such as apparel, textiles, gems and jewellery, leather, plastics, chemicals, oil seeds, shrimp, and horticultural products.

Beyond tariff-related issues, the two sides are expected to negotiate on broader matters including:

• Data localisation
  
  

• Evergreening of patents
  
  

• Government procurement rules
  
  

• India’s quality control mandates
  
  

India is also keen to address long-standing issues like the totalisation agreement (which prevents dual taxation of social security contributions) and easier access to work visas for Indian professionals.

Current Trade Dynamics

The US continues to be India’s largest trading partner for the fourth consecutive year, with total bilateral trade reaching $131.84 billion in FY25. India’s exports to the US rose by 11.6% to $86.51 billion, while imports increased by 7.4% to $45.33 billion.

Looking Ahead

The upcoming in-person sectoral engagements mark a critical phase in the India-US BTA journey. As both sides explore “early mutual wins,” the world’s two largest democracies are signaling a firm commitment to building a trade relationship that is mutually beneficial, resilient, and future-ready.

Stay tuned for updates as the negotiations progress — the outcomes could reshape the trade landscape for both nations for years to come.