Sun Mar 30 12:46:55 UTC 2025: ## India and US Make Progress in Trade Talks Amidst Tariff Threats

**New Delhi, India** – Amidst looming reciprocal tariff threats from US President Donald Trump, India and the US have made significant progress in bilateral trade negotiations this week. Officials from both countries met in New Delhi from March 26-29, focusing on tariff reduction, easing non-tariff barriers, and accelerating the process of a proposed bilateral trade agreement (BTA).

The talks, led by India’s commerce ministry and a US delegation headed by Assistant US Trade Representative Brendan Lynch, yielded positive results. A statement from India’s commerce ministry declared the discussions a success, reflecting progress towards expanding trade and investment relations. Sectoral talks under the BTA are scheduled to begin virtually in the coming weeks, paving the way for in-person negotiations.

The two nations aim to finalize the first phase of a trade deal by autumn (September-October) and have set an ambitious goal of more than doubling bilateral trade to $500 billion by 2030, up from the current $190 billion. This target was reaffirmed during Prime Minister Narendra Modi’s recent visit to Washington. India has pledged to increase purchases of US energy and defense products.

US concerns regarding India’s high tariffs, some of the highest globally, remain central to the negotiations. The US currently has a $45.6 billion trade deficit with India, while India’s average tariff is significantly higher than the US average (12% vs 2.2% according to WTO data). The US seeks reductions on a range of products and improved market access for US companies.

Separately, US Deputy Secretary of State Christopher Landau held discussions with Indian Foreign Secretary Vikram Misri, focusing on reducing trade barriers and enhancing defense and technology cooperation. Landau also expressed appreciation for India’s efforts in addressing illegal immigration to the US.

President Trump’s recent positive comments about Prime Minister Modi and his optimistic outlook on the tariff negotiations further indicate a potential softening of his stance towards India. While previously critical of India’s tariff policies, he described Modi as a “very smart man” and expressed confidence that the talks would yield positive results. The outcome of these negotiations will significantly impact the future of US-India trade relations.

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