Indian Team Arrives In Washington For Key Trade Talks, Focus On Easing Tariffs & Reaching First Phase Deal
Key Highlights:
- Four-day India-US trade talks begin in Washington amid tariff concerns.
- India holds firm on dairy, seeks US duty cuts on steel, autos.
- First phase of the BTA expected by fall, interim deal possible by August.
New Delhi: A team from India’s commerce ministry has reached Washington, DC, for important trade talks with the United States. These talks will go on for four days, from Monday to Thursday. The goal is to move forward on a Bilateral Trade Agreement (BTA) between the two countries.
India’s Chief Negotiator, Rajesh Agrawal, will join the team on Wednesday. The Deputy Chief Negotiator is already in Washington and will be part of the talks from the start.
Why These Talks Matter
These trade talks are important because the US has delayed imposing new extra tariffs (import taxes) on several countries, including India, until August 1. Both countries want to make progress before that date.
One official said that they are not dividing the talks into “interim” or “final” stages. Instead, they are working on a full deal. If some parts are agreed upon early, they can be made into a temporary deal while talks continue on the rest.
Key Issues in the Talks
There are a few big issues where both countries still need to agree:
Agriculture and Dairy: The US wants India to lower import duties (taxes) on dairy and farm products. But India has never given duty cuts in dairy under any trade deal and is firm on this point.
Steel, Aluminium, and Auto Tariffs: India wants the US to reduce high tariffs on Indian exports like steel (50 percent), aluminium, and cars (25 percent). India is also asking the US to remove an extra 26 percent duty.
What the US Wants: The US is pushing for lower duties on cars (especially electric vehicles), wine, industrial products, and genetically modified crops.
What India Wants: India is asking for duty relief for sectors like textiles, leather goods, chemicals, shrimp, jewellery, bananas, and grapes, which provide jobs to many people.
Trade Growth Between India and the US
India’s exports to the US grew by 21.78 percent in April-May 2025, reaching USD 17.25 billion. Imports from the US rose 25.8 percent, touching USD 8.87 billion.
Both countries are aiming to finalize the first phase of the trade deal by September or October. But before that, they hope to agree on an interim deal, possibly by August 1.
(With PTI Inputs)
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