With both sides having reached an understanding on the next steps, India’s Commerce Ministry indicated that the expert-level engagements will pave the path for an early negotiating round in person. The four days of exchange of views focused on deepening bilateral cooperation in priority areas, including on increasing market access, reducing tariff and non-tariff barriers and mutually beneficial supply chain integration. With both sides aiming to realise the shared objective of promoting growth while ensuring fairness, national security and job creation, the 1st tranche of the BTA is aimed to be finalised by the fall of 2025.
A few days back,
sources had told CNBC TV18 that the Indian industry is concerned over the impact of reciprocal tariffs by the US, which are slated to kick in on April 2. Sources had indicated that the Indian industry wants the conclusion of a BTA as early as possible to avoid the impact of the proposed reciprocal tariffs by the United States, with jobs at stake. Sources added that the Indian industry wants to avert or delay the tariffs kicking in on April 2 and is writing to the government to protect itself from the impact of reciprocal tariffs.
As on date, reciprocal tariffs have not been applied by the US on India. This was not the first round of negotiations yet, but both sides were finalising the contours, negotiation schedule and terms of reference of the proposed BTA. The BTA is likely to be finalised in two tranches, with the first phase expected to focus on issues pertaining to goods trade. The US has sought greater market access in certain industrial goods, automobiles, wines, and agriculture, while India may seek duty cuts in labour intensive sectors like textiles.
Both the countries are expected to look at each other’s sensitivities while trying to find a common ground to create synergy for two-way trade and investments, as well as predictability in tariffs, regulations, and economic integration.
As a follow up to the India-US Joint Statement of February 13 where both the sides had agreed to expand bilateral trade to reach $500 billion by 2030, including through the conclusion of a Bilateral Trade Agreement (BTA), representatives of India’s Department of Commerce and the Office of the US Trade Representative convened in New Delhi from March 26 to 29, 2025. The meeting followed the visit of Indian Prime Minister Narendra Modi and Commerce and Industry Minister Piyush Goyal to the US, and the discourse around tariff wars is also turning shriller, with several countries responding hawkishly to the American threats.
(Edited by : Asmita Pant)