India-US Trade Deal: A New Era of Bilateral Trade Relations

India and the US are progressing towards a bilateral trade agreement focusing initially on goods, followed by services. The initiative aims to conclude its first phase by fall 2024. Both nations are negotiating sector-specific terms amid America's threat of reciprocal tariffs on its trading partners, including India.

India and the United States are set to embark on a significant bilateral trade agreement, with a focus on goods in the first phase and services to follow, according to sources familiar with the negotiations. The target for concluding this initial phase is set for the fall period of September to October this year.

These developments occur amid ongoing discussions about reciprocal tariffs threatened by the US on April 2. The recent talks, which concluded on March 29, involved senior officials from both countries. A US team led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, has been laying down the agreement's framework, aiming to double bilateral trade to USD 500 billion by 2030.

The trade talks have gained momentum, especially after US President Donald Trump publicly commended Indian Prime Minister Narendra Modi on March 28, describing him as a 'very smart man.' The US seeks duty concessions on industrial goods, automobiles, and agricultural products, while India is looking to secure benefits for its labor-intensive sectors like textiles.

(With inputs from agencies.)