India and the United States have wrapped up a key round of negotiations for a proposed bilateral trade agreement, government sources told PTI on Saturday. The discussions, led by a team of US officials headed by Assistant US Trade Representative for South and Central Asia Brendan Lynch, are reportedly making steady progress. After the first round of talks concluded, no clear resolution has ben reached regarding the issue of reciprocal tariffs as Commerce Ministry remained silent on the matter. Meanwhile, the Ministry stated that sectoral expert-level discussions under the Bilateral Trade Agreement (BTA) are set to commence virtually in the coming weeks.
The four-day trade talks saw substantial convergence on key aspects of the proposed agreement, though the Terms of Reference (ToR), a crucial document outlining the scope and objectives of the deal, remain unfinished, The Indian Express reported. A government official told IE that while both sides made headway, the absence of finalised ToR means formal negotiations have yet to commence.
In an official statement, India’s Commerce and Industry Ministry described the talks as constructive, emphasising a “broad understanding” on the next steps towards a mutually beneficial trade agreement. The ministry noted that the first phase of the agreement is targeted for completion by fall 2025. However, it did not clarify whether the US would reconsider its planned reciprocal tariffs, set to take effect from April 2, a concern for the Indian industry.
“Both sides, through four days of discussions in New Delhi, have broadly agreed on the next steps towards a mutually beneficial, multi-sector BTA, aiming to finalise its first tranche by fall 2025. Sectoral expert-level engagements under the BTA will begin virtually in the coming weeks, paving the way for an early in-person negotiating round,” the ministry stated.
While details of specific agreements remain undisclosed, the ministry said “productive exchanges” on increasing market access, reducing tariff and non-tariff barriers and enhancing supply chain cooperation were made.
Despite optimism about trade ties, uncertainty looms over the reciprocal tariffs. Speaking on Saturday, former US President Donald Trump acknowledged the progress in discussions and hinted that exemptions could be granted to “a lot of countries” when the tariffs take effect on April 2.
(With inputs from agencies)