An official statement said that New Delhi, 3 April (PTI) both India and the United States want to accelerate talks for the proposed bilateral trade agreement (BTA) as the two countries are looking to promote two-way commerce.
The two countries have decided to hold field-specific dialogues from this month to finalize the structure of the agreement.
From April 9 this year, the USA’s decision to impose an additional 27 percent import duty on Indian goods from April 9 was eager to intensify the talks.
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The Commerce Ministry said, “There is a discussion between Indian and American trade teams for early conclusion of a mutually beneficial, multi-regional BTA … We are in touch with Trump administration on these issues and expect them to take them forward in the coming days.”
Through the agreement, the two countries want to increase market access to their goods, cut tariffs and non-tariff barriers and deepen supply chain integration.
A team of American officials led by the Assistant American Trade Representative for South and Central Asia Brandon Lynch was here to finalize the terms and conditions of the contexts of the proposed treaty last month, which was intended to double bilateral trade from current USD 191 billion to 2030 to USD 500 billion USDs by 2030.
Although the two sides have set a time limit to end the first phase of the agreement by the fall of this year (September-October), the complex nature of interaction for a business treaty can expand the process for years.
A government official said that India was the only country where Trump-Administration sent its team for business talks.
The official hoped that India would be able to navigate the additional 27 percent import duty declared by the US from April 9.
“With BTA in the pipeline, we are in one area that we should not be worried more than these tariffs,” the official said.
Asked whether issues such as rules of origin are part of the treaty, the official said that BTA would have any other trade agreement.
“We are progressing well,” the official said.
In a trade treaty, two countries either reduce or eliminate customs duty on the maximum number of trading goods between them. They also reduce criteria to promote trade in services and promote investment.
Whereas the US has demanded duty concessions in areas such as some industrial goods, automobiles, wines, petrochemical products, dairy, agricultural commodities like apples, tree nuts and alfalfa grass; India can see duty cuts for labor-intensive areas like textiles.
The official said, “India has an initial-loving advantage. It is deeply associated with them for BTA. We are progressing on it. A lot of work has been done. We are ahead of the curve.”
In 2024, India’s main exports to the US in drug formulation, biological (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), gold and other precious jewelry (usd 3.2 billion), (USD 2.7 billion).
Import includes crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft, space crafts and parts (USD 1.3 billion), and gold (USD 1.3 billion).
In 2023-24, the US was the largest trading partner in India, with 119.71 billion bilateral bilateral trade (USD 77.51 billion exports, USD 42.19 billion imports, USD 35.31 billion USD 35.31 billion business).
India has received USD 67.8 billion in foreign direct investment between April 2000 and September 2024. PTI RR CS HVA
This report is auto-generated with PTI News Service. ThePrint does not have any responsibility for its content.