
India, US in Active Trade Deal Talks
India and the United States are currently engaged in active negotiations to finalise a Bilateral Trade Agreement (BTA). The government informed Parliament that five rounds of discussions have taken place so far, though no official deal has been signed yet.
Key Issues Remain Unresolved
While both sides are keen on reaching an agreement, a breakthrough before the August 1 deadline appears unlikely. Disagreements remain on critical issues such as tariff reductions on agricultural products, dairy, steel, aluminium, and automobile parts. India has been cautious about opening up sensitive sectors due to domestic economic implications.
Optimism Amid Challenges
Commerce Minister Piyush Goyal has described the progress as encouraging and expressed confidence that India would receive fair treatment in any future agreement. He said the aim is to reach a balanced deal that offers tangible benefits to both countries rather than skewing towards one side.
Next Phase of Negotiations
A U.S. trade delegation is expected to visit India in August for another round of talks. Discussions are likely to focus on areas like export controls, especially products listed under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) list, along with broader tariff concerns.
Officials have hinted that if a comprehensive trade deal proves difficult to conclude immediately, a phased or sector-specific agreement could be considered.
Tariff Deadlines Approach
India is currently facing a looming U.S. deadline related to reciprocal tariffs. Unless an agreement is reached soon, certain Indian exports could face higher duties starting next month. The situation is being closely monitored by exporters, industry bodies, and policymakers.
The India-US BTA is seen as an important step in India’s broader strategy to secure market access and diversify trade relationships in a rapidly evolving global economy.