India and US to Focus on Market Access and Tariff Reduction in Proposed Trade Agreement

In an ongoing effort to enhance bilateral trade relations, India and the United States are working towards a comprehensive bilateral trade agreement aimed at increasing market access, reducing import duties, and dismantling non-tariff barriers. This development comes as Minister of State for Commerce and Industry Jitin Prasada informed Parliament that, so far, the US has not imposed reciprocal tariffs on India. The negotiation promises a mutually beneficial arrangement focusing on creating more integrated supply chains and resolving trade disputes amicably. This announcement coincides with the recent US memorandum calling for a review of potentially harmful non-reciprocal trade agreements to the US economy, potentially impacting future negotiations should terms not be agreed upon. Amidst global economic uncertainties, India has also adjusted its tariff policies, particularly in the industrial sector, reducing the average industrial tariff post the 2025-26 budget. The top exports from India to the US comprise pharmaceuticals, gems, and petroleum products, underscoring the diverse nature of this trade relationship. Congress MP Shashi Tharoor has expressed his cautious optimism about the ongoing talks, anticipating a sensible outcome that maintains the trade balance. These developments highlight the strategic importance of the US-India trade axis and its potential impact on broader geopolitical alignments. Analyzing the news, the focus appears to be on promoting a balanced and mutually beneficial trade relationship, with the constructive involvement of both governments. The strategic dialogue aims not just to cement existing trade paths but to innovate and integrate further across new sectors. However, given the US’s strategic trade review, there is an underlying friction of economic interests that could disrupt a seamless negotiation process. Observers suggest future talks will need to clarify these ambiguities to prevent any trade disputes.