India, US Finalise Trade Deal Terms, Delegation To Visit Washington

The terms of reference (ToRs) for the proposed bilateral trade agreement between the United States and India have been finalized. The deal will include a number of topics, including as commodities, services, and customs facilitation. Next week, an Indian group will travel to Washington to resolve a few outstanding matters prior to the formal commencement of negotiations.

Rajesh Agrawal, the assistant secretary in the Department of Commerce and India's principal negotiator for the trade agreement, will lead the Indian delegation. On October 1, Agrawal, who was named the new commerce secretary on April 18, will take over. On Wednesday, April 23, Washington will host the first round of face-to-face negotiations.

This visit is noteworthy since it comes weeks after a high-level US group traveled to India, indicating that the Bilateral Trade Agreement (BTA) talks are moving further. Last month, senior-level negotiations between the two nations also happened in India.

From March 25 to 29, Brendan Lynch, the U.S. associate trade representative for South and Central Asia, traveled to India for crucial trade talks. On April 9, US President Donald Trump declared a 90-day tariff respite, which both countries are keen to take advantage of.

On April 15, India's Commerce Secretary, Sunil Barthwal, stated that the nation wants to accelerate talks with the United States, with a particular emphasis on trade liberalization. By 2030, India and the US hope to have more than doubled their present bilateral trade volume of about USD 191 billion to USD 500 billion.

In order to promote trade in services and draw in investment, the trade agreement is anticipated to streamline rules and lower or abolish customs charges on a wide range of items. Certain industrial commodities, electric cars, wines, petrochemicals, dairy products, and agricultural items including apples and tree nuts are among the items on which the US is requesting tariff reductions. India may, in the meantime, advocate for reduced tariffs on labor-intensive industries like clothing, textiles, jewelry, leather, plastics, chemicals, oilseeds, shrimp, and horticulture goods.

The US has been India's largest trading partner from 2021 to 2024, accounting for 18% of India's total goods exports, 6.22% of imports, and 10.73% of overall bilateral trade.

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