In New Delhi, Indian and U.S. officials engaged in discussions regarding trade matters, focusing on reducing tariffs and eliminating non-tariff barriers in order to work towards a bilateral trade agreement. The talks, led by representatives from India's commerce ministry and a U.S. trade delegation headed by Brendan Lynch, assistant U.S. trade representative for South and Central Asia, took place from March 26-29.
In a separate meeting, U.S. Deputy Secretary of State Christopher Landau and Indian Foreign Secretary Vikram Misri conversed about the importance of reducing trade obstacles to establish a fair and balanced bilateral trade relationship while also strengthening defense and technology collaboration for regional security. The U.S. Department of State acknowledged India's efforts in curbing illegal immigration to the U.S. and emphasized the need for continued cooperation.
As U.S. President Donald Trump prepares to enforce reciprocal tariffs on various trading partners starting April 2, India seeks an exemption through ongoing bilateral discussions. The goal is for both countries to finalize the initial phase of a bilateral trade agreement by autumn. India's commerce ministry praised the fruitful talks, underscoring progress in enhancing the bilateral trade and investment partnership to foster mutual prosperity, security, and innovation.
During Prime Minister Narendra Modi's recent visit to Washington, India committed to increasing purchases of U.S. energy products and defense equipment, with the aim of reaching $500 billion in bilateral trade by 2030. The U.S. has voiced concerns about India's high tariffs on various goods and hopes for greater market access for American companies. Piyush Goyal, India's trade minister, traveled to Washington for discussions, with plans for virtual sector-specific expert engagements followed by in-person negotiating sessions for the bilateral trade deal in the upcoming weeks.
The current trade deficit between the U.S. and India stands at $45.6 billion, influenced by disparities in tariff rates, with the U.S. having an average rate of 2.2% compared to India's significantly higher average tariff of 12%, according to the World Trade Organization data.