Talks for Proposed India-US Trade Pact Gaining Pace: An Explainer

India is exploring the possibility of an early tranche during the 90-day tariff pause window

- OUR CORRESPONDENT

NEW DELHI: Talks for the proposed bilateral trade agreement are gaining momentum, with the first in-person three-day negotiations between the chief negotiators of the two countries scheduled to begin on April 23 in Washington.

The visit is significant as India is exploring the possibility of an early tranche during the 90-day tariff pause window. The two sides have also finalized the terms of references (ToRs) for the agreement.

A list of Q&As (questions and answers) to explain the importance of this visit and implications of high tariffs on China for India:

Q. What is an 'early tranche'?

A. The US and India have aimed for a bilateral trade agreement (BTA), which is a kind of free trade pact. The two have decided to conclude the proposed BTA in two tranches or phases. They have fixed a deadline to conclude the first phase by fall (September-October) of this year.

However, taking advantage of the 90-day tariff pause window, India is exploring the opportunity to discuss an "early tranche".

Under this, both sides can look at discussing issues like greater market access for a limited number of goods (unlike maximum number of goods covered in a full FTA) and cutting down non-tariff barriers.

This could set the stage for more complex negotiations (such as issues like government procurement and digital trade) in subsequent phases. However, the early tranche is possible only if it results in a win-win outcome for both.

Q. Has India negotiated free trade agreements in phases earlier?