Trade discussions between India and the United States are currently underway in New Delhi, with a key focus on reducing tariff and non-tariff barriers, improving market access, and strengthening supply chain resilience. Government sources told CNBC-TV18 that Brendon Lynch, Assistant US Trade Representative, is visiting India from June 4 to 10 as part of the American delegation for talks on the proposed India-US bilateral trade agreement (BTA).Commerce and Industry Minister Piyush Goyal recently said both countries intend to offer preferential market access to businesses, while also continuing bilateral efforts to resolve issues such as tariffs on aluminium and steel. Sources said a limited agreement appears feasible before the finalisation of the first tranche of the broader trade pact.
On May 21, officials indicated that India is seeking full exemption from the 26% additional tariffs as part of the interim deal. This is being pursued ahead of 9th July to avoid the imposition of paused reciprocal tariffs by the US.
Goods and digital services are likely to be part of the interim agreement, according to government officials. They pointed out that the US administration currently lacks authority to reduce tariffs below the Most-Favoured Nation (MFN) rate without Congressional approval, although it can lift reciprocal tariffs for selected countries, including India. In return, the US is looking for concessions in industrial goods, automobiles, wines, petrochemicals, dairy, and other agricultural products.India is also pushing for Minimum Import Price (MIP) or import quotas in sensitive sectors such as dairy and agriculture. Additionally, it is seeking a reduction of 5% to 7% in Basic Customs Duty (BCD) for exports of labour-intensive goods like leather.Both countries are aiming to double bilateral trade to $500 billion by signing the first tranche of a multi-sector BTA by October 2025.
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