New Delhi: As the deadline for the Trump administration’s reciprocal tariffs approaches on April 2, India and the U.S. have commenced intense in-person negotiations in New Delhi, marking a significant step towards a bilateral trade agreement. These talks, aimed at setting a framework for structured discussions, are critical as both countries seek to establish a collaborative trade relationship, distinct from the U.S.’s contentious trade posture towards China, Mexico, and Canada. Despite the looming tariffs, U.S. officials have indicated that India will be treated differently, reflecting a distinct approach in their trade relations.
The ongoing discussions between Indian and U.S. officials are part of a broader effort to finalize a Bilateral Trade Agreement (BTA) by fall 2025. This comes after Union Commerce Minister Piyush Goyal’s recent visit to the U.S., where preliminary talks were initiated with U.S. trade representatives. The meetings are focused on establishing a Terms of Reference (TOR) that will guide the negotiations, ensuring a roadmap for achieving this ambitious trade pact.
“It is now amply clear that the Trump administration does not club India with countries like China, Mexico, and Canada,” said a trade official, highlighting the strategic difference in their approach with India. The official noted that the U.S. has serious issues with other trading partners related to currency manipulations and security concerns, but with India, the focus is solely on tariff issues, which are being resolved amicably.
Led by Commerce Ministry’s Additional Secretary Rajesh Agarwal and U.S. Assistant Trade Representative Brendan Lynch, the negotiations are progressing in a cordial spirit. The outcome is expected to be satisfying for both governments and may influence the Trump administration’s decision on reciprocal tariffs by the April 2 deadline. Additionally, Union Finance Minister Nirmala Sitharaman is likely to visit Washington later in April to further advance the talks, reinforcing India and the U.S.’ commitment to strengthening their economic ties as strategic partners.
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