New Delhi, Sept 19: The high-level trade negotiations between India and the United States are moving toward a bilateral agreement that could strengthen India’s influence on security and regional matters, according to a report.
Washington is prioritizing efforts to reduce dependence on Chinese supply chains, while India’s large, skilled workforce offers an attractive alternative for American firms. Negotiators have suggested that lowering tariffs on pharmaceuticals, textiles, and IT services could help India regain lost market share and position itself as a reliable supply-chain hub.
India has also sought the rollback of punitive US duties, which pushed its exports to the US down from $8.01 billion in July to $6.86 billion in August. Both sides are determined to avoid escalation and pursue a “mutually beneficial” pact.
India’s Ministry of Commerce reported that bilateral trade in goods and services reached $128 billion in 2022-23, a 7.7% increase from the previous year. Experts believe India’s strong domestic consumption and GST 2.0 reforms have cushioned the impact of tariff uncertainty.
Some analysts linked the US’s renewed focus on India to Prime Minister Narendra Modi’s recent trip to China for the Shanghai Cooperation Organisation summit. US Congresswoman Deborah Ross described the visit as a “smart move,” suggesting it signaled to Washington that Modi “has options.”
Talks are being led by US negotiator Brendan Lynch and India’s Special Secretary of Commerce Rajesh Agrawal, with both sides expressing intent to conclude the deal at the earliest.