India - US Trade Deal: India and the United States will commence three-day talks on the first phase of their proposed bilateral trade agreement here from
December 10, news agency PTI reported citing sources. The visit is crucial as India and the US are working to finalise the first tranche of the pact. Details of the Upcoming Talks "The three-day talks will start on December 10. It will conclude on December 12, and it is not a formal round of talks," one of the sources told PTI. The US team will be led by Deputy United States Trade Representative (USTR) Rick Switzer. Background on Recent Visits This visit of the US officials marks their second trip since the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market due to the purchase of Russian crude oil. On September 16, the US officials last visited India. On September 22, Commerce and Industry Minister Piyush Goyal also led an official delegation to the US for trade talks. Goyal had also visited Washington in May. Key Negotiators While the USA's chief negotiator for the pact is Assistant US Trade Representative for South and Central Asia Brendan Lynch, the Indian side is led by Joint Secretary in the Department of Commerce Darpan Jain. Significance Amid Tariff Challenges The talks are also important as Commerce Secretary Rajesh Agrawal has recently stated that India is hopeful of reaching a framework trade deal with the US this year itself, which should address the tariff issue to the benefit of Indian exporters. While noting that the Bilateral Trade Agreement (BTA) will take time, Agrawal has added that India is engaged in protracted negotiations with the US on a framework trade deal that will address the reciprocal tariff challenge faced by Indian exporters. India and the US are having two parallel negotiations -- one on a framework trade deal to address tariffs and another on a comprehensive trade deal. Origins and Goals of the Agreement In February, leaders of the two countries directed officials to negotiate an agreement. It was planned to conclude the first tranche of the pact by the fall of 2025. So far, six rounds of negotiations have been held. The agreement aims to more than double bilateral trade to USD 500 billion by 2030, from the current USD 191 billion. Current Trade Statistics The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports). The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent of its imports, and 10.73 per cent of its total merchandise trade. Impact on Indian Exports According to exporters, the agreement is important as India's merchandise exports to the US declined for the second consecutive month in October, falling by 8.58 per cent to USD 6.3 billion due to the hefty tariffs imposed by Washington. (With PTI inputs)
