India and US Resume High-Stakes Trade Negotiations in New Delhi
India and the United States have resumed crucial bilateral trade talks in New Delhi, aiming to resolve longstanding tariff disputes. The discussions are led by US Assistant Trade Representative Brendan Lynch and Indian Special Secretary Rajesh Agrawal. The meeting follows recent positive statements from both nations' leaders, raising hopes for a breakthrough after a period of stalemate. Key issues on the table include market access and tariffs, with the goal of forging a comprehensive trade agreement.
Unpacked:
Key disputes involve India’s high tariffs on US goods such as agricultural products and medical devices, and US concerns over India’s data localization and e-commerce rules. The US also seeks lower tariffs and better market access for American products, while India wants restoration of preferential trade benefits and greater access for its exports.
Past talks stalled due to disagreements over tariffs, intellectual property, agricultural subsidies, and US concerns about India’s market restrictions. Political shifts and the suspension of India’s trade privileges under the Generalized System of Preferences also created friction, delaying progress toward a comprehensive deal.
The US is India’s largest trading partner, with bilateral trade reaching about $132 billion in 2023-24. Both countries aim to increase this to $500 billion by 2030, which would significantly boost their economic ties and global market competitiveness.
A comprehensive trade agreement would deepen economic ties and support broader cooperation in technology, defense, and environmental sustainability. It would also strengthen geopolitical alignment, helping both countries jointly address regional and global challenges.