The United States has expressed its strong intention to establish a comprehensive trade agreement with India, with discussions involving all sectors, as stated by a spokesperson from the US Embassy. This development occurs as both countries strive to achieve the ambitious Mission 500 goal, which aims to more than double total bilateral trade to $500 billion by 2030.
During Prime Minister Narendra Modi's visit to Washington, US President Donald Trump and Prime Minister Modi set this ambitious target to enhance economic cooperation. As part of this initiative, both leaders announced plans to negotiate the first phase of a mutually beneficial, multi-sector Bilateral Trade Agreement, expected to be finalised by the fall of 2025, according to the spokesperson.
US Commerce Secretary Howard Lutnick has reaffirmed this commitment, emphasizing the United States' desire for a "grand trade deal" with India. He also emphasized Washington's priority to reduce India's current tariff levels, a longstanding issue in trade discussions between the two nations.
"The United States is seeking a comprehensive trade agreement with India, with no sector to be excluded," stated Secretary Lutnick, who added that reducing tariff barriers is a crucial objective.
Last week, during the India Today Conclave, Lutnick emphasized the importance of India reducing tariffs on American goods to strengthen the relationship between the two nations. Lutnick highlighted the need for a significant trade agreement that addresses all key aspects and encouraged direct bilateral discussions to revamp trade dynamics.
In line with Trump's views, he emphasized that India's tariffs are among the highest globally, highlighting the need for a review of the trade partnership to shape the future relationship between New Delhi and Washington.
"It's time to do something big, something grand, something that connects India and the United States together, but does it on a broad scale, not product by product, but rather the whole thing. Let's bring India's tariff policy towards America down, and America will invite India to have really an extraordinary opportunity and relationship with us," Lutnick said.
Earlier, US Embassy spokesperson Chris Elms also said President Trump's "Fair and Reciprocal Plan" is aimed at correcting long-standing imbalances in international trade and bringing back fairness to America's trade relationships.
He said: "The United States is one of the most open economies in the world, yet our trading partners maintain barriers to our exports. This lack of reciprocity is unfair, contributes to the United States' large and persistent trade deficit, and threatens our economic and national security."
The US has reportedly requested for no duties on all products traded with India, except for agricultural goods. According to news agency Reuters, the US is pushing for zero duties on Tesla cars being sent to India. A spokesperson from the US Embassy mentioned that all sectors are being considered for duty exemptions.
"As Commerce Secretary Lutnick said, the United States seeks a grand trade deal between India and the United States, and the United States seeks to bring down the tariff levels that India has. Secretary Lutnick noted that no sector should be off the table," he said.
No commitments on trade tariff: India
During a briefing to the Parliamentary panel on Monday, Commerce Secretary Sunil Barthwal stated that India has not made any commitments regarding trade tariff reductions to the United States. This statement was made in response to US President Donald Trump's recent assertion that India had agreed to significantly lower its tariffs.
Barthwal clarified that negotiations between the two countries are still ongoing and no trade agreement has been finalized. Addressing concerns raised by some members of the Parliament panel regarding Trump's claims, Barthwal emphasized that India has not made any commitments on trade tariffs to the US, underscoring the importance of ongoing bilateral trade agreement talks.
"One cannot go by the US President's claims and on media reports as the bilateral trade agreement talks between the two nations are still on. India has not committed to anything on trade tariffs to the US," Barthwal said.