Sat Mar 29 11:05:54 UTC 2025: ## US and India Make Progress on Bilateral Trade Agreement Amidst Tariff Tensions
**New Delhi, March 29, 2025** – India and the United States concluded another round of talks on a proposed bilateral trade agreement Saturday, with government sources reporting positive progress. The negotiations, led by Assistant U.S. Trade Representative Brendan Lynch, aim to significantly boost bilateral trade to $500 billion by 2030, more than double the current level.
The talks come amidst ongoing tariff disputes. US President Donald Trump, who recently described Prime Minister Narendra Modi as a “very smart man and a great friend,” expressed optimism about reaching a mutually beneficial agreement, despite previously criticizing India’s high tariffs. The US has already imposed tariffs on various goods from China and other countries, including a recent 25% tariff on vehicles and auto parts. India, a major oil importer from Venezuela, also faces potential tariffs on all imports from countries that purchase Venezuelan oil and gas.
While the US seeks duty concessions on various goods, including industrial products, automobiles, and agricultural items, India is considering lowering tariffs on labor-intensive sectors such as textiles. Indian industry, however, is pressing for protection against potential reciprocal tariffs from the US, its largest trading partner. India has already taken steps to reduce tariffs on some US products like bourbon whiskey and certain wines. The recent scrapping of the equalisation levy on tech giants also benefits US companies.
Experts suggest that sensitive sectors like dairy and agriculture are unlikely to be included in the initial trade agreement. US agricultural exports to India totaled $1.6 billion in 2024, with almonds being a significant component. In 2023-24, bilateral trade between the two nations reached $119.71 billion, with a $35.31 billion trade surplus for India. The first phase of the agreement is targeted for completion by the fall of 2025. The discussions continue against the backdrop of significant US foreign direct investment in India, totaling $67.8 billion between April 2000 and September 2024.
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