Trade talks conclude, India eyes tariff respite from US
The four-day discussions, which began on Wednesday and were extended by a day, resulted in both sides agreeing on a broad contour for negotiating a bilateral trade agreement
India and the US concluded their first face-to-face trade talks with “significantly positive outcomes” that may secure New Delhi some exemptions from Washington’s planned April 2 retaliatory tariff action, people close to the development said.
The four-day discussions, which began on Wednesday and were extended by a day, resulted in both sides agreeing on a broad contour for negotiating a bilateral trade agreement (BTA). The commerce ministry confirmed that the two partners discussed increasing market access and reducing tariff and non-tariff barriers.
“Sectoral expert level engagements under the BTA will start virtually in the coming weeks and pave the path for an early negotiating round in person,” the commerce ministry said in a statement issued Saturday evening.
Officials familiar with the negotiations pointed to several positive indications from the talks. “Firstly, the bilateral trade negotiation in New Delhi was extended by one more day. Secondly, the two now agreed to enter into the next level of talks through virtual mode. Thirdly, India is the only country engaging with USA to sign a mutually beneficial BTA while others like China, Canada, Mexico, Germany and the European Union are resorting to retaliation. And finally, President Trump’s positive reference with regard to India,” said one of these people, requesting anonymity.
They were referring to Trump’s statement made at the White House on Friday. “President Donald Trump described Prime Minister Narendra Modi as a ‘very smart man’ and his ‘great friend’ while emphasising that tariff talks between the US and India would work out very well,” PTI reported on Saturday.
In the negotiations, the US team was led by assistant US Trade representative Brendan Lynch, while additional secretary Rajesh Agrawal headed the Indian delegation. The talks took place in what officials described as “a friendly and cordial atmosphere with shared purpose” to reach an agreement by September this year, in line with the vision set out by the two countries’ leaders.
“India and the United States expressed satisfaction with the outcomes of the meeting and reaffirmed their dedication to ongoing collaboration. Both sides look forward to building on this milestone in the coming months to finalise the BTA, ensuring it aligns with the shared goals of prosperity, resilience, and mutual benefit,” the commerce ministry’s statement said.
On February 13, Prime Minister Narendra Modi and President Donald Trump had resolved to deepen the US-India trade relationship to promote growth that ensures fairness, national security and job creation, with the aim of boosting total bilateral trade from about $200 billion to $500 billion by 2030 (Mission 500).
Federation of Indian Export Organisations (Fieo) director general Ajay Sahai welcomed the development. “The successful conclusion of the India-US trade discussions marks a significant step forward in strengthening bilateral economic ties. The upcoming sectoral engagements under the BTA signal a new era of opportunity for Indian exporters. Enhanced market access, reduced trade barriers, and deeper supply chain integration will create a more predictable and growth-oriented trade environment. We look forward to the swift finalization of the BTA, which will further boost India’s export competitiveness and drive mutual prosperity and hope this development will provide waiver or exemption to India from the threat of reciprocal tariffs,” he said.
According to the commerce ministry statement, both sides have broadly come to an understanding on the next steps towards a “mutually beneficial, multi-sector” BTA, with the goal to finalise its first tranche by fall 2025.
“During these discussions the two sides also had a productive exchange of views on deepening bilateral cooperation in priority areas including increasing market access, reducing tariff and non-tariff barriers and deepening supply chain integration in a mutually beneficial manner,” the statement said.
“The successful conclusion of the discussions reflects progress in efforts to expand India-US bilateral trade and investment relations to promote prosperity, security and innovation in both the countries,” it said. “These steps are designed to unlock new opportunities for businesses, drive bilateral economic integration, and reinforce the economic partnership between India and the United States.”
The New Delhi talks followed Union commerce minister Piyush Goyal’s visit to Washington from March 4-6, during which he met his American counterparts – US trade representative Jamieson Greer and commerce secretary Howard Lutnick. Subsequently, there have been several video conferences between officials of the two sides.
The outcome of these talks comes just days before President Trump’s April 2 deadline for imposing reciprocal tariffs, which has caused uncertainty in global markets. Unlike China, Mexico, and Canada, which are facing significant US tariff actions, India appears to be charting a more collaborative path in its trade relationship with the United States.
