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Informist, Monday, Sept. 15, 2025

 

--Govt: India, US to hold 1-day trade deal talks in New Delhi on Tue 

--Govt: No non-trade issues to be discussed at India-US talks Tue

--Govt source: Next round of India, US trade talks from Tue in New Delhi 

 

NEW DELHI – India and the US will hold the next round of talks on the proposed bilateral trade agreement on Tuesday in the national capital, India's chief negotiator Rajesh Agrawal said Monday. During the negotiations, the two countries will not discuss any non-trade related issues, said Agrawal, who is a special secretary in the commerce ministry. Brendan Lynch will lead the negotiation from the US, Agrawal said. Lynch is the assistant US Trade Representative for South and Central Asia.

 

The next round of talks between the two nations comes as a huge positive for Indian exporters who are reeling under the heat of Washington's 50% tariff on Indian goods to the US, which accounts for nearly 20% of India's total exports. In 2024-25 (Apr-Mar), India exported goods worth $86.51 billion to the US and had a trade surplus of $40.82 billion. Citing displeasure over the high trade gap, the US has imposed 25% reciprocal tariffs on India, with an additional 25% as punitive tariff for trading with Russia. 

 

The proposed trade deal with the US is seen as an insulation against the tariffs but New Delhi and Washington are at loggerheads over US' demand to gain access to India's politically and socially sensitive farm and dairy sector. India has always been protective about its farm and dairy sector, but the US wants to push genetically modified crops and dairy products into India under the deal. New Delhi is unwilling to yield to these demands. If the 50% tariff continues, it could hurt India's growth by nearly half a percentage point.

 

US' higher tariffs on India result in a pricing disadvantage of 30–35% for Indian exports, making them less competitive than those from China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries. Tuesday's meeting is crucial especially given that in the recent past, US President Donald Trump, Prime Minister Narendra Modi, and Commerce and Trade Minister Piyush Goyal have all voiced optimism about the intent to close the deal at the earliest. 

 

On Thursday, Goyal said that both the countries are making good progress on securing the first tranche of the proposed bilateral trade deal by November.  End

 

US$1 = INR 88.21

 

Reported by Krity Ambey

Written by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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