Abhishek Sinha
In a significant development on the India–US trade front, government sources confirmed that a negotiating team from India is currently in the United States to discuss tariff and trade-related issues. Officials described the ongoing talks as “constructive and aimed at achieving a win-win outcome” for both nations.
“Engagement between the two sides is ongoing. A negotiating team from India is in the US trying to see if we can have a win-win solution between the two sides,” said sources familiar with the discussions.
The talks come amid efforts by both governments to finalize the first phase of a bilateral trade deal by the fall of 2025, despite existing tariff tensions.
Tariffs and Trade Challenges
Sources said that around 45% of India’s exports to the US currently remain exempt from tariffs, while negotiations continue on the remaining categories.
Earlier this year, the Trump administration imposed 50% tariffs on select Indian imports as part of its broader trade policy, impacting sectors such as textiles, pharmaceuticals, and auto components.
India, however, has maintained steady export growth to the US, which continues to be its largest trading partner for the fourth consecutive year. In FY2024–25, bilateral trade between the two countries stood at $131.84 billion, including $86.5 billion in exports from India.
Leaders Review Progress
On October 9, Prime Minister Narendra Modi held a phone conversation with US President Donald Trump, during which both leaders discussed the Gaza peace plan and ongoing trade negotiations.
According to sources, both sides noted “good progress” in trade discussions despite differences over tariffs and investment norms.
High-Level Engagement and Diplomatic Push
The talks are part of a broader engagement that includes both trade and non-trade issues. So far, five rounds of negotiations have been completed, with discussions continuing at multiple levels.
Last month, Commerce and Industry Minister Piyush Goyal led an official delegation to New York for trade talks with US Trade Representative Jamieson Greer and US Ambassador-designate Sergio Gor.
Meetings were also held between US Chief Negotiator Brendan Lynch and India’s Rajesh Agrawal to iron out key aspects of the proposed Bilateral Trade Agreement (BTA).
India’s Strategic Trade Approach
Officials say India remains committed to balancing market access with domestic industry protection, particularly in sensitive areas such as agriculture, e-commerce, and data localization.
“Discussions are deeper this time. We have seen growth in exports to the US, and that momentum may continue,” a senior official noted.
Background
India and the US share one of the world’s most dynamic trade relationships. The US accounts for nearly 18% of India’s total exports, 6.2% of imports, and over 10% of its overall merchandise trade.
Both sides are expected to continue discussions over the coming weeks to finalize an initial framework agreement that will lay the groundwork for a comprehensive bilateral trade pact in 2026.
