India, US begin crucial trade talks
India and the United States began fresh trade talks in Washington to finalise an interim bilateral deal amid shifting tariff policies. Both sides aim to resolve disputes on tariffs, market access and investigations, with negotiations seen as key to broader economic ties
Washington: India and the United States began a fresh round of trade negotiations here on Monday aimed at giving a final shape to the much-awaited trade deal between the two countries.
A team of around a dozen Indian officials arrived in the US capital for the three-day talks scheduled from April 20 to 22. The delegation is led by India’s chief negotiator, Darpan Jain, an Additional Secretary in the Department of Commerce, along with representatives from the Customs Department and the External Affairs Ministry.
The discussions mark the next step in negotiations on the first phase of a bilateral trade agreement (BTA), building on earlier rounds aimed at finalising an interim arrangement between the two countries. Officials said the Washington meeting is expected to take forward discussions that have already been held on the interim trade agreement.
The talks come at a time when the US tariff regime has undergone significant changes, complicating earlier understandings. Following a US Supreme Court ruling against sweeping tariffs imposed under emergency powers, Washington introduced a temporary 10 per cent tariff on imports from all countries for 150 days beginning February 24.
This shift has altered the negotiating landscape. Earlier, the US had agreed to reduce tariffs on Indian goods to 18 per cent from as high as 50 per cent, including the removal of certain punitive duties linked to India’s purchase of Russian oil. However, the uniform tariff has diluted India’s relative advantage, prompting both sides to reassess the framework of the deal.
Officials indicated that the revised tariff environment could necessitate a recalibration of the agreement, which was initially outlined on February 7.
Beyond tariffs, the talks are also expected to address ongoing unilateral investigations launched by the US Trade Representative under Section 301 of US trade law. India has rejected the allegations in these probes, arguing they lack sufficient justification and has called for their termination.
Another key issue likely to feature in discussions is a broader investigation into whether policies related to banning and restricting goods made using forced labour are adequate and whether such practices affect US trade interests.
The current round of talks also carries diplomatic significance as it comes ahead of a planned visit by US Secretary of State Marco Rubio to New Delhi next month.
Earlier negotiations had reached an advanced stage, with India proposing to reduce or eliminate tariffs on a wide range of US industrial goods and agricultural products, including soybean oil, tree nuts, fruits, wine and spirits, and animal feed products.
India had also indicated its willingness to increase imports from the US, targeting purchases worth $500 billion over five years across sectors such as energy, aviation, technology, precious metals and coking coal.
The latest round follows a postponement of a February meeting between chief negotiators after the US court ruling on tariffs. Both sides had decided to review developments before resuming formal talks.
India and the United States are among the world’s largest trading partners, with bilateral trade spanning goods, services and technology. Efforts to conclude a limited trade deal have been underway for several years, with both sides seeking to balance market access with domestic sensitivities.
The proposed agreement is seen as a stepping stone towards a broader economic partnership, even as differences over tariffs, regulatory standards and market access continue to shape negotiations.
