India and US making progress towards trade deal, officials say
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India and the US in February agreed to aim for a deal targeting bilateral trade of US$500 billion (S$670 billion) by 2030.
PHOTO: REUTERS
NEW DELHI - Indian and US officials discussed trade issues, including the reduction of tariffs and easing of non-tariff barriers, making progress towards a bilateral trade agreement during several days of talks in New Delhi, they said on March 29.
The negotiations, led by officials from India’s Commerce Ministry and a US trade delegation headed by Mr Brendan Lynch, Assistant US Trade Representative for South and Central Asia, were held from March 26 to 29.
Separately, US Deputy Secretary of State Christopher Landau spoke with Indian Foreign Secretary Vikram Misri about efforts to reduce trade barriers and achieve a “fair and balanced bilateral trade relationship”, while also strengthening defence and technology cooperation to bolster regional security.
Mr Landau thanked India for its efforts in addressing illegal immigration to the US and urged continued cooperation, the US Department of State said in a statement.
The talks come as US President Donald Trump prepares to impose reciprocal tariffs on multiple trading partners from April 2, with India hoping for an exemption amid the bilateral talks. Both countries aim to sign the first tranche of a bilateral trade deal by autumn.
“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 countries,” a statement by India’s Commerce Ministry said.
In February, during Prime Minister Narendra Modi’s visit to Washington, India pledged to boost purchases of US energy products and defence equipment, and the two sides agreed to aim for a deal targeting bilateral trade of US$500 billion (S$671 billion) by 2030.
Mr Trump has called India a “tariff king”, with the US wanting India to reduce levies on products ranging from agricultural goods and alcoholic beverages to automobiles, and seeking greater market access for US companies.
Mr Piyush Goyal, India’s trade minister, visited Washington earlier in March for talks with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Sector-specific expert engagements for the bilateral trade agreement will begin virtually in the coming weeks, followed by an in-person negotiating round, the joint statement said.
The US currently has a US$45.6 billion trade deficit with India. While the US trade-weighted average tariff rate stands at about 2.2 per cent, India’s average tariff is significantly higher at 12 per cent, according to World Trade Organisation data. REUTERS
