Synopsis
India and the US are moving towards signing the first tranche of a Bilateral Trade Agreement aimed at reducing tariffs ahead of the fall 2025 deadline. Significant negotiations are underway, with both nations optimistic about the economic benefits of a timely agreement.Key Takeaways
- India and the US are finalizing a Bilateral Trade Agreement.
- The goal is to reduce tariffs before fall 2025.
- Negotiations are both virtual and in-person.
- Commerce Minister highlights India's growth potential.
- A $500 billion trade target by 2030 has been set.
New Delhi, April 15 (NationPress) India and the US are making strides towards formalizing the initial segment of a Bilateral Trade Agreement (BTA) aimed at reducing tariffs ahead of the targeted deadline of fall 2025, as the terms of reference for the agreement have already been established.
Rajesh Agarwal, Additional Secretary of Commerce, stated on Tuesday, "The terms of reference for the BTA between India and the US were finalized during the recent visit of the US delegation. Negotiations for the first tranche will commence virtually this week, with in-person discussions anticipated by the month’s end."
Commerce Secretary Sunil Barthwal highlighted that both nations stand to gain if the trade deal is concluded prior to fall 2025. "Pursuing a first tranche of the BTA with the US by fall does not rule out the possibility of finalizing it sooner. Achieving this agreement ahead of schedule would be beneficial for both India and the US," he noted.
Should both countries agree on tariff reductions, it would significantly enhance trade opportunities for both the US and India. The recent 90-day pause on implementing higher duties is applicable to all nations, not just specific ones.
On April 9, US President Donald Trump announced a delay in imposing stricter tariffs on several countries, including India.
Additionally, Commerce Minister Piyush Goyal remarked last week that "very productive negotiations" with the US are currently in progress. He emphasized that India has a strong case for a bilateral trade deal, considering its growth potential and demographic advantages.
Goyal mentioned, "With the projected growth over the next 25-30 years and a large, aspiring, youthful population driving demand for goods and services, India presents a compelling case for a substantial agreement with the US."
During the Indian Prime Minister’s visit to Washington, Prime Minister Narendra Modi and President Trump established an ambitious goal of achieving $500 billion in bilateral trade by 2030.
