New Delhi, May 23 (PTI) Commerce and Industry Minister Piyush Goyal held his second meeting with US Commerce Secretary Howard Lutnik in Washington on Friday, which was currently discussing the proposed bilateral trade agreement between the two countries.
Also on 20 May, Goyal held a meeting with Lutnik to intensify the talks in the first phase of the trade pact.
Goyal said in a post on X, “There was a creative meeting with Secretary @Howardlutnick for mutually beneficial trade agreement. It is committed to increase opportunities for our businesses and people.”
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The meeting is important as the two countries are finalizing an interim trade agreement by 8 July.
The four -day discussion among the chief negotiaters also concluded in Washington on 22 May.
In the interim trade deal, New Delhi is emphasizing for full exemption from 26 percent mutual tariff on Indian goods.
On 2 April, the US imposed an additional 26 percent mutual tariff on Indian goods, but suspended for 90 days for 90 days. However, 10 percent of the baseline tariffs imposed by the US remain in place.
Due to the 90-day suspension of 26 percent additional import duty, Indian exporters are currently paying only 10 percent baseline tariff instead of 26 percent.
Currently, the Trump administration requires approval from the US Congress to bring tariffs under the MFN (most preferred nation) rates. But the administration has the right to remove mutual tariffs imposed on many countries including India.
India may see some commitments from the US on duty concessions for its labor-intensive field in the first installment of the proposed bilateral trade agreement (BTA). The two countries have set a time limit to terminate the first phase of the treaty by this year’s collapse (September-October), which exceeds USD 500 billion by 2030 more than bilateral trade.
To promote bilateral trade, India is demanding duty concessions for labor-intensive areas such as textiles, gems and jewelery, leather items, textiles, plastic, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed treaty with America.
On the other hand, the US wants duty concessions in areas such as some industrial goods, automobiles (especially electric vehicles), wine, petrochemical products, dairy and agricultural commodities such as apples, tree nuts and GM (genetically modified) crops.
While the import of GM crops from the US remains a non-starter due to regulatory criteria in India, New Delhi Alpha Alpha He (a type of cattle feed) is open to import non-Gram products.
The US was India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade to USD 131.84 billion. About 18 percent of the total goods exports of the US, 6.22 percent in imports and 10.73 percent in the country’s total trade trade.
Along with the US, in India in 2024–25 goods were a trade surplus of USD 41.18 billion (difference between imports and exports). It was 35.32 billion in 2023-24, US $ 27.7 billion in 2022-23, USD 32.85 billion in 2021-22 and USD 22.73 billion in 2020–21. The US has expressed concern over this broader trade deficit. PTI RR DRR
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