High-level talks between India and the United States are gaining significant traction, with a potential bilateral trade agreement on the horizon. A senior Indian delegation is set to visit the U.S. this week to further negotiations that commenced in February, aiming to untangle the complex web of tariffs currently impacting bilateral trade. This crucial visit follows productive discussions between Prime Minister Narendra Modi and U.S. President Donald Trump last Thursday, where both leaders expressed optimism for a deal.
Officials involved in the process indicate that five rounds of talks have already yielded positive results, moving the discussions in a “right direction” towards a “steady breakthrough.” The primary objective is to establish a mutually beneficial trade framework and dismantle existing tariff barriers. This move is particularly significant as global trade dynamics shift, with the U.S. seeking stronger alliances amidst escalating tensions with China.
The U.S. Treasury Secretary has voiced strong opposition to China’s export restrictions on rare earth materials, labeling it an “attack on global supply chains.” The U.S. plans to collaborate with allies, including India, to counter such moves. Earlier, Commerce and Industry Minister Piyush Goyal met with U.S. trade officials, agreeing to continue pursuing a comprehensive trade deal.
A key focus of the ongoing negotiations is addressing the substantial retaliatory tariffs imposed by the U.S. on Indian goods, currently standing at 50% due to India’s oil imports from Russia. A finalized trade agreement is expected to significantly ease these trade barriers. The ambitious goal is to more than double bilateral trade to $500 billion by 2030, up from the current $191 billion. The U.S. has consistently been India’s largest trading partner, underscoring the strategic importance of this pact for both economies and potential job creation.