The US and India are engaged in virtual talks for a trade agreement aiming to boost trade from $200B to $500B by 2030, with initial outcomes expected soon
The US and India are “intensely” engaged in sector-specific talks through virtual mode in lines with the terms of reference (ToRs) they finalised on March 29 in New Delhi that binds them to find “mutually beneficial solutions” for reducing tariff and non-tariff barriers, increasing market access and deepening supply chain integration, people aware of the development said.
The ToRs are “broad-based” giving “wide scope” to both parties to negotiate an “ambitious, mutually beneficial, multi-sector BTA” (bilateral trade agreement) that would help to enhance the two-way trade to $500 billion by 2030 from the current level of about $200 billion, two of the people added, requesting anonymity. They, however, declined to divulge specific details of the ToRs because of a non-disclosure agreement (NDA).
“We are progressing well on the BTA negotiations and we expect to be ready with the first tranche of BTA before the fall of 2025. Possibly, the two countries would sign an early harvest deal where tariff and non-tariff issues will be addressed for greater market access. It will be followed by other complex issues such as protection to intellectual property (IP) and government procurement,” one of them said.
Hindustan Times on Friday reported that India and the US are negotiating the first tranche of the BTA through a fast-track mechanism and expected to arrive at some tangible outcomes over the next 90 days. Washington has suspended an additional 16% (10% baseline tariff for all countries kicked in on April 2) reciprocal tariffs for India till July 9, 2025.