The US-India Business Council (USIBC) has called for the swift removal of non-tariff barriers and bureaucratic “red tape” that obstruct market access as the United States and India begin preliminary negotiations for a trade agreement. USIBC’s statement comes as Indian Commerce Minister Piyush Goyal visits Washington for discussions with U.S. Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
These negotiations follow the commitment made during the recent meeting between Indian Prime Minister Narendra Modi and US President Donald Trump in Washington, where the two leaders agreed to explore the possibility of a comprehensive trade deal to strengthen economic ties between the two nations.
“We wish both governments success in their negotiations and urge them to leverage the trade relationship for mutual growth,” said USIBC President, Ambassador Atul Keshap, in a statement on Tuesday. He stressed that a comprehensive bilateral trade deal, long overdue, could serve as a significant catalyst for economic growth in both countries.
The discussions are expected to focus heavily on tariff policies, particularly given President Trump’s emphasis on “reciprocal tariffs” for all trading partners—a policy that has raised global concerns about its potential economic impacts.
Keshap noted that despite significant investments by businesses from both countries, India accounts for only 2.5% of the United States’ total trade volume. He suggested that this number could and should increase significantly through a formal trade agreement, which would help create a more level playing field and enhance market access for both nations.
“The time is right for both governments to establish a framework that ensures equal opportunity, guarantees full and open market access, and provides swift dispute resolution along with predictable tax and regulatory policies,” Keshap stated. He added that such a framework would not only encourage greater investment but also stimulate economic growth and job creation in both the U.S. and India.
USIBC urged both governments to act quickly to remove non-tariff barriers that continue to hinder trade flows and complicate market access for businesses on both sides. Keshap stressed the importance of timely action, stating, “This is a unique opportunity for both sides to negotiate a landmark bilateral agreement that can further unlock entrepreneurship and GDP growth in both countries.”
Members of USIBC, representing American and Indian businesses, have expressed strong support for the trade negotiations, with many eager for a deal that will deepen the strategic, economic, and technological partnership between the two nations.
(With PTI Inputs)