Fri Mar 28 16:13:12 UTC 2025: ## India and US Conclude Three-Day Trade Talks, Aiming for Partial Agreement by Fall
**New Delhi, March 29, 2025** – India and the United States concluded three days of negotiations on a bilateral trade agreement with a wrap-up session this morning. While discussions are described as being in an early stage, both sides expressed optimism. Commerce and Industry Minister Piyush Goyal stated that the talks are progressing well and will benefit both nations while safeguarding India’s interests.
The talks are significant given President Trump’s recent announcement of reciprocal tariffs on key trading partners, including India, starting April 2nd. These tariffs follow previously imposed duties on steel, aluminum, and most recently, a 25% tariff on completely built vehicles and auto parts, effective April 3rd.
The two countries aim to finalize the first phase of the agreement by September-October 2025 and more than double bilateral trade to $500 billion by 2030 (from the current $190 billion). The US is seeking duty concessions on various goods, including industrial products, automobiles, wines, and agricultural items. India, in turn, may seek duty cuts for labor-intensive sectors such as textiles.
Indian industry is urging the government to protect them from the impending US tariffs, highlighting the significant impact on businesses given the US is India’s largest trading partner. India has already made some concessions, including reducing import duties on bourbon whiskey and certain wines in February. Further, the recent scrapping of the equalization levy on tech giants could also benefit US businesses.
While the US is pushing for a comprehensive agreement, including access to India’s agriculture sector, experts believe India is unlikely to include this politically sensitive area in the negotiations. US agricultural exports to India totaled $1.6 billion in 2024, with almonds, pistachios, and ethanol being key products.
In 2024, India’s major exports to the US included pharmaceuticals, telecom equipment, precious stones, and petroleum products. Conversely, key imports included crude oil, petroleum products, coal, diamonds, and aircraft parts. In 2023-24, bilateral trade reached $119.71 billion, with a $35.31 billion trade surplus for India. The US has also invested heavily in India, with $67.8 billion in foreign direct investment between April 2000 and September 2024.
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