MoS Commerce in Rajya Sabha: India continues to engage with the US to achieve enhancement and broadening of bilateral trade ties

Strap:
 
Surabhi
 
As the three-day talks between India and the US on a bilateral trade agreement continue, Minister of State of Commerce and Industry Jitin Prasada informed Parliament that the Government of India continues to engage with the Government of the United States to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner.
 
In response to an unstarred question in Rajya Sabha on Friday, he said that the impact of the additional duties on steel and aluminium imports by the US is still being evaluated.
 
“The impact of these duties which are an enhancement over existing additional duties is being closely evaluated due to the fact that there are no exemptions as compared to exemptions earlier to certain major exporting countries in this sector,” he said.
 
Prasad also noted that the joint statement on February 13, 2025, following PM Narendra Modi’s visit to the US has reaffirmed both the countries, reaffirming their commitment to deepening economic ties and double India-US trade to $ 500 billion by 2030.
 
“Both countries have committed to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement under which the countries would focus on increasing market access, reducing tariff and non-tariff barriers, enhancing supply chain integration and resolving key trade issues bilaterally,” the minister said.
 
On Friday, India and US have continued discussions on the contours of the bilateral trade agreement and parleys are expected to go on until late evening. Ahead of the reciprocal tariffs announced by the US from April 2, India is keen on finalising the contours of the trade pact and is willing to cut duties on several items including automobiles, bikes, bourbon whiskey, medical devices as well as agricultural produce such as walnuts and pistachios. The US, however, is understood to be keen on more access for its agricultural produce.

Sources indicated that at present, the aim of the talks is to discuss tariffs and broad areas where they can be lowered with the ultimate goal of having the first instalment of the trade pact final in the coming months. “It would be almost impossible to finalise the trade negotiation at present. Both countries will have to take inputs from their respective stakeholders on the proposed give and take,” noted a person familiar with the development.
 
They pointed out that India in recent months has already demonstrated that it is willing to cut tariffs and has cut tariffs on several US goods in the Budget and later as well.
 
There has been no official statement from India and the US on the state of the negotiations at present. However, commerce and industry minister Piyush Goyal had on Thursday said the ongoing trade negotiations with the US are moving positively and are “progressing well”.
 
A team of officials from the US led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, along with a team of US government officials, are visiting India from March 25-29.
 
A report by Barclays estimated that about $ 22 billion of India’s exports or 30% of exports to the US and 5% of total goods exports are most at risk. “Given close trade ties, we expect India to adopt a conciliatory tone on select tariffs and also address some non-tariff barriers,” said a note by Aastha Gudwani, India Chief Economist, Barclays.