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regular-article-logo Thursday, 24 April 2025

India, US begin sector-specific trade talks, clarity expected within weeks

Quoting an unnamed source, the report said that New Delhi is not overtly worried about the reciprocal tariffs, and said that sealing a trade deal with India is a priority for Washington as well

Our Special Correspondent Published 15.04.25, 06:46 AM
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India began sector-specific trade discussions with the US for the much-awaited bilateral trade agreement on Monday amid murmurs that the key details of how to go forward may be worked out within six weeks.

Virtual talks between the two sides will begin this week, a senior official aware of the developments was quoted in a Bloomberg report, which added that by the end of May, both sides aim to have clarity on the sectors where they have room for concessions.

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Quoting an unnamed source, the report said that New Delhi is not overtly worried about the reciprocal tariffs, and said that sealing a trade deal with India is a priority for Washington as well. Both sides are working on setting realistic targets, the official told Bloomberg.

Last week, the India establishment said it can reach a provisional trade agreement with the Trump administration in 90 days if the offers are mutually beneficial.

In an attempt to send a positive message to the US, New Delhi has already overhauled its tariff regime over the last few weeks, reducing import duties on some 8,500 industrial items, including on prominent American goods like bourbon whiskey and high-end motorcycles made by Harley-Davidson.

Officials are also considering US demands to reduce import tariffs on American farm products, although agriculture is a politically-sensitive issue in India.

Analysts have said India should be cautious when it comes to the politically sensitive farm sector.

“Many of Washington’s demands — such as weakening India’s MSP system for farmers, allowing genetically modified food imports, lowering agricultural tariffs — pose major risks,” Ajay Srivastava, former trade official and founder of GTRI, was quoted in the report.

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