Commerce and Industry Minister Piyush Goyal on Friday (May 23, 2025) held his second assembly with U.S. Commerce Secretary Howard Lutnick in Washington to discuss the proposed bilateral trade settlement at the moment underneath negotiation between the 2 nations.
On May 20, 2025, Mr. Goyal held a gathering with Secretary Howard Lutnick to expedite the talks on the primary part of the trade pact.
“Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people,” Mr. Goyal stated in a put up on X.
The assembly assumes significance, as each the nations are taking a look at finalising an interim trade pact by July 8, 2025. The four-day discussions between the chief negotiators have additionally concluded in Washington on May 22, 2025. In the interim trade deal, New Delhi is pushing for full exemption from the 26% reciprocal tariff on Indian items.
The U.S. on April 2, 2025, imposed an extra 26% reciprocal tariff on Indian items however suspended it for 90 days until July 9, 2025. However, the ten% baseline tariff imposed by America stays in place.
Owing to the 90-day suspension of the 26% further import obligation, Indian exporters are at current paying simply 10% baseline tariffs, as an alternative of 26% earlier proposed.
At current, the Trump administration requires approval from the U.S. Congress to convey tariffs under the MFN (most favoured nation) charges. But the administration has the authority to take away the reciprocal tariffs imposed on a lot of nations, together with India.
India might take a look at sure commitments from the U.S. on the obligation concessions for its labour-intensive sector in the primary tranche of the proposed Bilateral Trade Agreement (BTA). Both nations have fastened a deadline to conclude the primary part of the pact by fall (September-October) of this 12 months to greater than double bilateral trade to $500 billion by 2030.
To enhance bilateral trade, India is in search of obligation concessions for labour-intensive sectors like textiles, gems and jewelry, leather-based items, clothes, plastics, chemical substances, shrimp, oil seeds, chemical substances, grapes, and bananas in the proposed pact with America.
On the opposite hand, the U.S. desires obligation concessions in sectors resembling sure industrial items, cars (electrical automobiles in specific), wines, petrochemical merchandise, dairy, and agriculture objects resembling apples, tree nuts, and GM (genetically modified) crops.
While the import of GM crops from the U.S. continues to stay a non-starter owing to regulatory norms in India, New Delhi is open to the import of non-GM merchandise resembling Alpha alpha hay (a form of cattle feed).
The U.S. remained India’s largest buying and selling associate for the fourth consecutive 12 months in 2024-25, with bilateral trade valued at $131.84 billion. The U.S. accounts for about 18% of India’s complete items exports, 6.22% of imports, and 10.73% of the nation’s complete merchandise trade.
With America, India had a trade surplus (the distinction between imports and exports) of $41.18 billion in items in 2024-25. It was $35.32 billion in 2023-24, $27.7 billion in 2022-23, $32.85 billion in 2021-22, and $22.73 billion in 2020-21. The U.S. has raised considerations over this widening trade deficit.
Published – May 23, 2025 12:19 pm IST
