India and US push for swift trade pact phase one completion

 New Delhi: India's Commerce and Industry Minister Piyush Goyal met with US Commerce Secretary Howard Lutnick in Washington to accelerate negotiations for the first phase of the India-US bilateral trade agreement, according to PTI. Goyal's visit builds on previous discussions in March, aiming to finalise an interim trade arrangement in goods by the fall. The ministerial meeting, followed by talks between chief negotiators, seeks early wins by exploiting a 90-day tariff pause that halts additional 26 per cent tariffs on India until July 9. This follows the April 2 announcement addressing the trade deficit.

Key topics of negotiation include market access, rules of origin, and non-tariff barriers. India is pushing for duty concessions on labour-intensive sectors like textiles, gems, jewellery, and plastics, while the US targets tariff reductions in sectors including industrial goods, electric vehicles, wines, petrochemicals, and agricultural products. Both nations have finalised terms of reference covering tariffs, goods, services, and non-tariff barriers.

The US, India's largest trading partner for four consecutive years, accounted for $131.84 billion in bilateral trade in 2024-25, with the US constituting roughly 18 per cent of India's goods exports, according to PTI. Throughout the same period, India maintained a trade surplus with the US at $41.18 billion, up from previous years. Despite this surplus, the US has expressed concerns over non-tariff barriers affecting American goods in Indian markets.

As both countries work toward concluding the agreement, discussions remain focused on overcoming these trade barriers and ensuring mutual benefits. The ongoing negotiations represent a significant step in strengthening trade ties between India and the US, PTI wrote.

(WIth PTI inputs)