The ongoing “very active and intense discussions” between the United States and India over trade have been emphasised by External Affairs Minister S Jaishankar, who has emphasised a commitment to finalise a Bilateral Trade Agreement (BTA) by the autumn of 2025.
This declaration comes after recent discussions to improve bilateral ties and remove trade barriers between US President Donald Trump and Indian Prime Minister Narendra Modi.
Jaishankar stated that the talks have been fruitful, especially when it comes to topics like energy and defence. He said that he thinks a more significant military engagement between the two countries will result from President Trump’s willingness to establish a security alliance and provide access to American technologies.
The minister also mentioned that India is interested in boosting its LNG imports from the United States, pointing out that the reliability of American supply is essential for meeting India’s energy requirements.
These talks are taking place against the backdrop of President Trump’s intentions to apply reciprocal tariffs to nations like India that continue to slap excessive import taxes on US goods.
While the US has expressed worries about India’s tariffs, particularly in industries like autos, Jaishankar stated that India is willing to negotiate price reductions in other labour-intensive industries, like textiles.
Jaishankar also discussed why India chose not to join the Regional Comprehensive Economic Partnership (RCEP), stating that the country wanted safeguards against any import spikes that would hurt its own sectors.
Over time, there has been a greater consensus in India with this decision, he said.
Both countries are concentrating on improving market access and lowering tariff and non-tariff obstacles as they strive to complete the BTA.
With the ambitious goal of doubling this amount by 2030 under the “Mission 500” program launched by Modi and Trump earlier this year, the objective is to greatly increase bilateral trade, which reached about $190 billion in 2023.
