4-Day Closed-Door Talks On India-US Trade Deal Conclude. What Was Discussed

Significant progress was made in the latest round of talks between India and the United States over a possible interim trade deal expected within weeks - one that aims to boost the annual bilateral trade between the two largest democracies from the current $190 billion to a whopping $500 billion by 2030.

A team of top American negotiators held closed-door meetings with their Indian counterparts in New Delhi over four days, concluding on Tuesday. The talks primarily focused on greater market access for both industrial and agricultural products in either country, tariff cuts, and non-tariff barriers, people familiar with the matter said.

While the US delegation was led by officials from the Office of the US Trade Representative, the Indian team of negotiators from the trade ministry was led by Rajesh Agrawal. "The negotiations held with the US side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins," a government source told news agency Reuters.

Boosting bilateral digital trade was reportedly another key focus area during the talks. A series of initiatives which will help improve customs and facilitation measures were discussed in detail, the source said, adding that both sides are looking to finalize an initial part of the comprehensive trade pact soon, and discussions will intensify in the days to come.

THE NEGOTIATIONS

In today's talks, India resisted US demands to open its markets to wheat, dairy, and corn imports, while offering lower tariffs on high-value US products such as almonds, pistachios and walnuts. India also asked the US to revoke its 10 per cent baseline tariff imposed by the Trump administration under a national emergency. But the US side opposed this, noting that even Britain was subject to this under its recent bilateral trade agreement.

On steel, India asked for an exemption from Washington's move to impose 50 per cent tariffs. New Delhi also said that it would consider increasing import of American energy, like LNG, crude oil, and coal, while also purchasing defence equipment.

AN INTERIM PACT LIKELY THIS MONTH?

Both countries are aiming to sign an initial deal within the month of June, perhaps on the sidelines of the G7 Summit in Canada, when Donald Trump and Prime Minister Modi will meet - though that less than a week from today.

Amid rising criticism over his hasty trade decisions, Donald Trump is reportedly keen on signing a deal with India before the expiry of his 90-day pause on reciprocal tariffs, which includes a 26 per cent tariff on India - which would severely impact export of textiles, footwear, rice, and shrimp.

However, while negotiators from the trade ministry were busy fine-tuning the trade deal with the US in New Delhi, the Union Minister, Piyush Goyal, was in Switzerland structuring another mega trade pact with the European Union - India's second-largest trading partner. 

On the India-US trade pact, Mr Goyal said India is prepared to proceed with a deal by first addressing simpler issues. Government officials added that the more complex matters could be negotiated in the next phase of talks, suggesting that India may agree to sign an interim deal.

India is looking to sign the next tranche of the bilateral trade pact with United States by September or October, they said.