New Delhi: As the clock ticks towards April 2, when US President Donald Trump’s reciprocal tariffs are set to take effect, India and the United States are engaged in intense trade negotiations. The backdrop is one of heightened anxiety and complex diplomatic maneuvering. External Affairs Minister S Jaishankar highlighted the “very active” and “intense” discussions underway in New Delhi on Wednesday. This comes after talks between Prime Minister Narendra Modi and President Trump in Washington, where they agreed to pursue a bilateral trade agreement by fall 2025.
Jaishankar refrained from forecasting immediate outcomes, emphasizing the strong business case for such an agreement. He noted, “There’s a very active and intense trade discussion going on at this point of time,” during an interactive session hosted by the Asia Society. Brendan Lynch, the assistant US trade representative for South and Central Asia, is in India for a five-day visit, adding to the sense of urgency.
India has signaled openness to reducing tariffs on significant imports from the US. Recently, it lowered tariffs on products like bourbon whiskey, wines, and electronic vehicles in a move seen as an olive branch to the Trump administration. However, concerns persist about opening India’s protected agricultural market. Jaishankar downplayed these concerns, asserting that they should not be insurmountable obstacles.
India is also engaged in discussions for free trade agreements with the European Union and the United Kingdom. These negotiations underscore India’s strategic push for diverse trade partnerships amidst global economic uncertainty.
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