Indian and U.S. officials have made significant progress toward a bilateral trade agreement following a series of negotiations held in New Delhi from March 26-29.
The discussions, led by India's Commerce Ministry and a U.S. delegation headed by Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, focused on strengthening trade and investment ties between the two nations.
Both sides are working towards signing the first phase of the trade agreement by fall 2025, with India seeking an exemption from upcoming reciprocal tariffs that the U.S. is set to impose on multiple trading partners from April 2.
A joint statement highlighted the commitment to expanding bilateral trade and investment, with sector-specific expert engagements scheduled to continue virtually before an in-person negotiation round.
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The discussions build on commitments made during Prime Minister Narendra Modi's visit to Washington last month, where India pledged to increase purchases of U.S. energy and defense products. Both countries have set a $500 billion bilateral trade target by 2030.
With the U.S. currently facing a $45.6 billion trade deficit with India, Washington has pushed for lower tariffs on agricultural goods, alcoholic beverages, and automobiles, along with increased market access for U.S. companies. India's average tariff of 12% remains significantly higher than the U.S. trade-weighted average of 2.2%.
For small businesses in both countries, a revised trade framework could mean lower trade barriers, improved export opportunities, and greater market access, fostering economic growth and innovation.
