WASHINGTON, D.C. — India and the United States are set to begin key trade negotiations from April 20 to recalibrate the proposed bilateral trade agreement (BTA), as recent tariff adjustments and shifting global trade dynamics affect India’s earlier competitive advantage.
A 12 member Indian delegation will hold three day discussions with US authorities in Washington, focusing on finalizing and revising elements of the first phase of the proposed agreement. The delegation is led by Darpan Jain, Additional Secretary in India’s Department of Commerce, and has been tasked with redrafting terms impacted by changes in the US tariff regime and evolving trade priorities.
The talks follow developments in US tariff policy that prompted several countries, including India, to reassess previously negotiated arrangements. A 10 percent tariff applied to multiple trading partners for a limited period altered the earlier structure under which India had secured reduced tariff access to the US market. As a result, both sides are expected to revisit provisions to maintain balanced trade conditions.
Officials said the main objective of the Washington discussions is to preserve India’s comparative advantage. Under the initial February framework, the United States had agreed to reduce tariffs on Indian goods from 50 percent to 18 percent. The arrangement had provided India with cost competitiveness compared with other exporters, but the introduction of uniform tariffs across trading partners reduced that advantage.
Since the agreement has not yet been signed, negotiators retain flexibility to modify terms. Government officials indicated that adjustments may be made to ensure India is not disadvantaged under the updated tariff environment.
Under the earlier framework, India had proposed eliminating or reducing tariffs on US industrial goods and easing non tariff barriers. The proposal also included reductions on a range of US agricultural products such as dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, wine, and spirits.
The previous draft also outlined India’s commitment to purchase USD 500 billion worth of US energy products, precious metals, semiconductor raw materials, aircraft parts, and coking coal over five years. These provisions may now be revised in line with changing trade conditions.
Another issue expected to be discussed during the talks involves investigations launched by the Office of the United States Trade Representative under Section 301 of US trade law. The inquiries examine manufacturing capacity and trade practices across several Asian economies. India has rejected the allegations and requested the termination of the probes, stating that the claims lack sufficient justification.
Separately, recent trade data shows shifts in India’s global trade relationships. Government figures indicate that China became India’s largest trading partner in 2025 to 2026, while the United States had held that position for four consecutive years until 2024 to 2025.
India’s exports to the United States rose slightly by 0.92 percent to USD 87.3 billion during the last fiscal year, while imports increased 15.95 percent to USD 52.9 billion. The trade surplus narrowed to USD 34.4 billion in 2025 to 2026 from USD 40.89 billion in the previous fiscal year.
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