Focus on tariff cuts, early deal in trade talks with US

India keen to avoid reciprocal tariffs as negotiations kick off in New Delhi

- Dhirendra Kumar

India and the US will outline the terms of their trade talks, discuss a schedule for tariff cuts, and work towards an early harvest deal at negotiations that kick off in New Delhi today, three officials aware of the matter said.

A US delegation led by Assistant US Trade Representative Brendan Lynch will discuss trade and tariff matters with Indian officials over three days beginning Wednesday. This will be the first in-person negotiations since an Indian team visited the US earlier this month.

"Talks have been going on virtually after the Indian delegation's visit to Washington in early March. We are positive about the discussions, and the sentiment is shared by the other side as well," one of the three officials said. India is keen to strike an early harvest deal—an agreement covering a limited range of goods—before the stated plans to tie up a bilateral trade agreement (BTA) by fall.

According to a second official, the two countries have informally exchanged a list of products where they are keen on securing duty concessions. New Delhi is trying to avoid reciprocal US levies on its key exports such as garments, engineering, electronics, pharmaceuticals, and gems and jewellery. These items together accounted for around 72.7% of the total goods trade between India and the US in FY24, contributing $56.34 billion out of the overall trade of $77.52 billion.

The US has imposed tariffs on all steel imports, and vowed reciprocal levies on all imports starting 2 April. US President Donald Trump has repeatedly complained that India's tariffs are too high, and that they put American exports at a disadvantage. A key objective of Indian trade officials will be to avoid reciprocal levies.