When United States President Donald Trump imposed a 25 per cent “reciprocal tariff” on India, many thought New Delhi would bend over backwards; and when he added another 25 per cent as punitive measure against buying Russian oil, they thought cargo ships from Moscow will be stopped immediately.Instead, New Delhi pursued measured negotiations, keeping dialogue channels open while sending strong signals on India’s readiness to defend its economic interests. President Trump has lately been sending positive signals about strengthening ties with India.
And now, India and the United States are on the verge of finalising the first phase of a bilateral trade agreement (BTA), which is expected to resolve tariff disputes and expand market access. Bilateral talks between India and the US have reached an advanced stage, with officials confirming that the first tranche of the BTA is “nearing closure”.
This phase primarily addresses the 50 per cent tariffs imposed by the US on Indian goods. Meanwhile, India’s Commerce Minister Piyush Goyal emphasised that any agreement must be fair, equitable, and balanced, protecting sensitive domestic sectors such as farmers and fishermen. The talks can be divided into two parts; one focussing on reciprocal tariffs, and another on broader market access and regulatory issues.