India and US to Finalize Bilateral Trade Agreement Amid Tariff Tensions

India and the US will hold sector-specific talks to finalize a bilateral trade agreement amid reciprocal tariff threats from the US. The agreement aims to increase market access and integration, potentially doubling bilateral trade by 2030. Negotiations may exclude politically sensitive sectors like dairy and agriculture.

India and the United States are gearing up for sector-specific discussions in the coming weeks, a crucial step towards finalizing the proposed Bilateral Trade Agreement (BTA), the commerce ministry announced on Saturday.

This move comes amid rising tensions due to the United States' threat to impose reciprocal tariffs against key trading partners, including India. High-level talks have recently concluded, with both nations eyeing an initial BTA tranche by fall 2025.

The discussions aim to enhance market access, cut tariffs, and strengthen supply chain integration. However, sectors like dairy and agriculture might be excluded due to their political sensitivity, despite the US's interest in opening them up to American businesses.

(With inputs from agencies.)