India and US Engage in 'Very Active, Intense' Trade Negotiations

External Affairs Minister S. Jaishankar announced on March 26 that Indian and U.S. officials are conducting "very active" and "intense" discussions to finalize a bilateral trade agreement (BTA). These negotiations aim to address mutual trade concerns and enhance economic collaboration between the two nations.

Progress in Trade Talks

During an interactive session hosted by the Asia Society, Jaishankar highlighted the ongoing efforts to reach a consensus on the BTA. He emphasized the strong "business case" for such an agreement but refrained from predicting immediate outcomes. The minister noted that following discussions between Prime Minister Narendra Modi and President Donald Trump in Washington, D.C., last month, both sides committed to negotiating the first phase of the BTA by the fall of 2025.

U.S. Tariff Concerns

The urgency of these negotiations is underscored by President Trump's declaration of a "Liberation Day," set for April 2, when new tariffs are scheduled to be imposed. India is keen to secure exemptions from these tariffs, which could affect a significant portion of its exports to the U.S. To mitigate potential impacts, India is considering reducing tariffs on over half of U.S. imports worth $23 billion.

Agricultural Market Considerations

Addressing concerns about opening India's agricultural market, Jaishankar acknowledged the sector's sensitivities but expressed confidence that these challenges are not insurmountable obstacles to finalizing the trade deal. He reiterated the importance of balancing interests to achieve a mutually beneficial agreement.

Strategic and Energy Partnerships

Beyond trade, Jaishankar highlighted expectations for a more substantial defense relationship with the U.S. under the Trump administration. He noted a greater openness from the U.S. in building security and defense partnerships, including sharing advanced technologies. Additionally, India aims to strengthen energy ties with the U.S. to ensure a stable and predictable energy environment, crucial for India's long-term growth and development. 

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