New Delhi: The terms of references (ToRs) finalised by India and the US for the proposed bilateral trade agreement include around 19 chapters covering issues such as goods, services, and customs facilitation, official sources said.
To give further impetus to the talks, an Indian official team is visiting Washington next week to iron out differences on certain issues before formally launching negotiations for the proposed India-US bilateral trade agreement (BTA).
India’s chief negotiator, Additional Secretary in the Department of Commerce Rajesh Agrawal, will lead the team for the first in-person talks between the two countries.
Agrawal was appointed as the next commerce secretary April 18. He will assume office from October 1.
The three-day Indian official team’s talks with the US counterparts in Washington will start from Wednesday (April 23), the official said.
The visit, which comes within weeks of a high-level US team visiting India, indicates that the talks for the BTA are gaining momentum.
The visit follows senior official-level talks held between the two countries last month here.
Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, was in India from March 25 to 29 for crucial trade discussions with Indian officials.
The two sides are keen to utilise the 90-day tariff pause, announced by US President Donald Trump April 9.
On April 15, Commerce Secretary Sunil Barthwal had stated that India will try to close the negotiations as quickly as possible with the US.
He also stated that India has decided to follow the trade liberalisation path with the US.
India and the US have been engaged in negotiating a bilateral trade agreement since March. Both sides have targeted to conclude the first phase of the pact by the fall (September-October) of this year, with an aim to more than double the bilateral trade to USD 500 billion by 2030, from about USD 191 billion, currently.
In a trade pact, two countries either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. They also ease norms to promote trade in services and boost investments.
While the US is looking at duty concessions in sectors like certain industrial goods, automobiles (electric vehicles particularly), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts, and alfalfa hay; India may look at duty cuts for labour-intensive sectors like apparels, textiles, gems and jewellery, leather, plastics, chemicals, oil seeds, shrimp, and horticulture products.
From 2021-22 to 2024-25, the US was India’s largest trading partner.
The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade.
With America, India had a trade surplus (the difference between imports and exports) of USD 41.18 billion in goods in 2024-25. It was USD 35.32 billion in 2023-24, USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22 and USD 22.73 billion in 2020-21. The US has raised concerns over the widening trade deficit.
To address the gap and boost manufacturing, the Trump administration announced sweeping tariffs on April 2, including 26 per cent on India. It was later suspended till July 9.
In 2024, India’s main exports to the US included drug formulations and biologicals (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 metal jewellery (USD 3.2 billion), ready-made garments of cotton, including accessories (USD 2.8 billion), and products of iron and steel (USD 2.7 billion).
Imports included 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, spacecraft and parts (USD 1.3 billion), and gold (USD 1.3 billion).
PTI
