In-person discussions likely in May to push India-US trade pact

New Delhi: India and the US may commence face-to-face talks in mid-May on their proposed bilateral trade agreement (BTA), as a follow-up to virtual talks expected to start later this week, officials said.

The hectic parleys come even as New Delhi remains hopeful of concluding negotiations for the first tranche of the trade pact “as quickly as possible”.

Indian trade negotiators could visit the US to take the talks forward next month, the officials said.

They also noted that higher costs of accessing the US market due to Trump’s tariffs may prompt exporters from China, Vietnam and Indonesia to divert their goods to India.

The commerce and industry ministry also said that Chinese retaliatory tariffs on US goods could further increase the inflow of US agricultural products into India.

The Centre has set up an import monitoring cell for tracking import surges from these countries amid a 90-day pause by the US on its ‘reciprocal tariffs’.

“We will try and close the negotiations for the bilateral trade agreement as quickly as possible. We are hopeful we will be able to negotiate a good agreement with the US. We also desire the talks to conclude soon,” one of the officials said.

Eye on Import Surge
The two sides aim to conclude talks for the first tranche of the trade pact by September-October though officials indicated that the negotiations may get completed even prior. Negotiations of various track groups for the BTA will start virtually this week. The two sides have also finalised and signed the terms of reference (ToRs) for the pact.

“We hope to get into the physical mode of negotiations, maybe in the second half of May. So, we are on schedule as far as the BTA and its negotiations are concerned,” said Rajesh Agrawal, additional secretary, Department of Commerce. Last fiscal year, the US remained India’s top export destination at $86.51 billion, up from $77.52 billion in FY24.

The commerce ministry said Chinese retaliatory tariffs on US goods could further raise inflow of US agricultural goods into India. “With the global uncertainties related to tariffs, obviously there are elevated apprehensions related to likely flooding or surge in imports or surge…to look at that…import surge monitoring group has been set up,” said L Satya Srinivas, additional secretary, department of commerce.