{"id":46498,"date":"2025-06-28T19:55:27","date_gmt":"2025-06-28T14:25:27","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=46498"},"modified":"2025-06-28T19:55:44","modified_gmt":"2025-06-28T14:25:44","slug":"india-us-trade-deal","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/28-06-2025\/india-us-trade-deal","title":{"rendered":"India-US Trade Deal To Finalise Soon"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/International Relation<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In a recent address, the <strong>US President<\/strong> signaled the possibility of a <strong>\u2018very big\u2019 trade<\/strong> <strong>deal with India<\/strong>, suggesting that negotiations between the two nations are gaining momentum.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About India-USA Trade Deal<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Past Engagements:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Post-independence:<\/strong> India\u2019s protectionist policies and the US\u2019s Cold War alliances limited deep economic engagement.<\/li>\n\n\n\n<li><strong>1991 Reforms:<\/strong> India\u2019s economic liberalization marked a turning point, opening the door to greater foreign investment and trade.<\/li>\n\n\n\n<li><strong>2005\u20132015:<\/strong> The US emerged as a key trading partner, with bilateral trade growing steadily.\n<ul class=\"wp-block-list\">\n<li>Initiatives like the <strong>US-India Trade Policy Forum (TPF)<\/strong> were launched to resolve disputes and deepen ties.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Present Scenario:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Trade Volume:<\/strong> Bilateral trade reached $191 billion, making the US India\u2019s largest trading partner.<\/li>\n\n\n\n<li><strong>Tariff Tensions:<\/strong> The US imposed a <strong>10% baseline tariff <\/strong>and <strong>proposed a 26% reciprocal tariff<\/strong> on Indian goods in April 2025, citing trade imbalances.<\/li>\n\n\n\n<li><strong>Negotiations Underway:<\/strong> Talks have intensified, with both sides aiming to <strong>finalize an interim trade deal before July 9, 2025<\/strong>. Key areas include:\n<ul class=\"wp-block-list\">\n<li>Market access for agricultural and industrial goods, including <strong>entry of genetically-modified (GM) crops;<\/strong><\/li>\n\n\n\n<li>Tariff concessions for Indian textiles, pharmaceuticals, and electronics;<\/li>\n\n\n\n<li>Digital trade and customs facilitation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Concerns in US-India Trade Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tariff Disparities:<\/strong> India maintains one of the highest average applied tariffs among G20 nations \u2014 around 17%, compared to the US average of 3.3%. India is seeking full exemption from these duties.\n<ul class=\"wp-block-list\">\n<li>The US is looking for greater market access, especially in sectors like agriculture, dairy, and industrial goods.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Agriculture and Dairy Sensitivities:<\/strong> India is cautious about opening its agriculture and dairy sectors, citing the need to protect small farmers and domestic producers.\n<ul class=\"wp-block-list\">\n<li>These sectors are politically sensitive and have become major sticking points in trade talks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Steel and Aluminum Tariffs:<\/strong> The US has imposed <strong>reciprocal tariffs of up to 26% on Indian steel and aluminum exports<\/strong>, citing national security concerns.\n<ul class=\"wp-block-list\">\n<li>India has protested these measures and is seeking concessions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Regulatory and Infrastructure Barriers: <\/strong>U.S. exporters often face non-transparent regulations, price sensitivity, and infrastructure bottlenecks in India.\n<ul class=\"wp-block-list\">\n<li>These include delays in project approvals, inconsistent state-level policies, and logistical inefficiencies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Digital Trade and Data Localization:<\/strong> India\u2019s push for data localization and its stance on digital sovereignty have raised concerns among US tech firms.\n<ul class=\"wp-block-list\">\n<li>Negotiations are ongoing to find common ground on digital trade norms.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India &amp; US remain committed to finalizing a multi-sector <strong>Bilateral Trade Agreement (BTA) by end 2025<\/strong>.\n<ul class=\"wp-block-list\">\n<li>The goal is <strong>to double bilateral trade<\/strong> to <strong>$500 billion by 2030,<\/strong> up from <strong>$191 billion in 2024\u201325.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>As both nations work toward a comprehensive trade pact, the outcome could reshape global supply chains, bolster economic resilience, and set a precedent for equitable globalization.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.thehindu.com\/news\/international\/trump-says-very-big-trade-deal-coming-up-with-india\/article69743373.ece\" rel=\"nofollow noopener\" target=\"_blank\">Source: TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">In a recent address, the US President signaled the possibility of a \u2018very big\u2019 trade deal with India, suggesting that negotiations between the two nations are gaining momentum.<\/li>\n<p><\/p>\n<h3><strong>Key Concerns in US-India Trade Relations<\/strong><\/h3>\n<li class=\"ms-5\">Tariff Disparities: India maintains one of the highest average applied tariffs among G20 nations \u2014 around 17%, compared to the US average of 3.3%. India is seeking full exemption from these duties.<\/li>\n<li class=\"ms-5\">The US is looking for greater market access, especially in sectors like agriculture, dairy, and industrial goods.<\/li>\n<li class=\"ms-5\">Agriculture and Dairy Sensitivities: India is cautious about opening its agriculture and dairy sectors, citing the need to protect small farmers and domestic producers.<\/li>\n<li class=\"ms-5\">These sectors are politically sensitive and have become major sticking points in trade talks.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/28-06-2025\/india-us-trade-deal\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-46498","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=46498"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46498\/revisions"}],"predecessor-version":[{"id":46511,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46498\/revisions\/46511"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=46498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=46498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=46498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}