India and U.S. Conclude Trade Talks Amid Tariff Discussions
India and U.S. officials concluded talks on a proposed bilateral trade pact, led by U.S. Trade Representative Brendan Lynch. President Trump praised PM Modi amid tariff discussions, with India seeking to finalize the agreement by fall 2025 and double trade to $500 billion by 2030. The negotiations may involve concessions across various sectors, while India pushes for protection in sensitive industries.
On March 29, 2025, India and U.S. officials concluded a series of discussions regarding a proposed bilateral trade agreement, indicating successful negotiations. The American delegation, led by Assistant U.S. Trade Representative Brendan Lynch, engaged in talks aimed at fostering stronger economic ties.
U.S. President Donald Trump expressed optimism about the ongoing talks, lauding Prime Minister Narendra Modi as a “very smart man” and a “great friend of mine.” His comments were particularly significant given his criticisms of India’s tariffs on U.S. goods and his recent announcement of reciprocal tariffs on several trading partners, including India.
In response to the U.S. trade stance, India’s government has reduced certain import duties, such as those on bourbon whiskey and wines. However, the Indian industry seeks protection against the U.S.’s potential tariffs, which could adversely affect their businesses, as the U.S. remains India’s largest trading partner.
India is aiming to finalize the first phase of the trade agreement by fall 2025 and is targeting an increase in bilateral trade to $500 billion by 2030. Negotiations are likely to focus on concessions for industrial goods, automobiles, and agricultural items, although India may resist including sensitive sectors such as dairy and agriculture in these discussions.
From 2023-24, the U.S. emerged as India’s leading trading partner, recording a trade volume of $119.71 billion, consisting of $77.51 billion in exports and $42.19 billion in imports, resulting in a $35.31 billion trade surplus for India. Since 2000, the U.S. has invested approximately $67.8 billion into India, signifying the strength of their economic relationship.
In summary, India and the U.S. have made progress in discussions regarding a potential bilateral trade agreement, with both sides aiming to finalize key elements by fall 2025. Despite ongoing tariff concerns and sensitive agricultural sectors, the two nations are focused on significantly increasing their trade volume by 2030. The evolving trade landscape underscores the importance of maintaining strong economic ties between India and the United States.
Original Source: www.thehindu.com
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