India Rejects Claims of Delaying Trade Deal With US, Says Talks On Track

On March 13, government sources in India refuted recent claims suggesting that the country would postpone a trade agreement with the United States. Officials emphasized that these assertions were “incorrect and misleading,” aiming to clarify misunderstandings about ongoing negotiations.

In February, the United States and India established a framework for an Interim Agreement focused on reciprocal and mutually beneficial trade. This initiative reaffirmed both nations’ commitment to a comprehensive Bilateral Trade Agreement (BTA), which was initially announced by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.

The framework outlines significant changes in trade practices. India has expressed its intent to eliminate or reduce tariffs on a variety of US industrial goods. This includes items such as dried distillers’ grains (DDGs), red sorghum intended for animal feed, tree nuts, fresh and processed fruit, soybean oil, and various beverages including wine and spirits.

Conversely, the United States plans to implement a reciprocal tariff of 18 percent on goods imported from India. This category encompasses textiles and apparel, leather and footwear products, plastic and rubber goods, organic chemicals, home decor items, artisanal crafts, and certain machinery. Following the successful negotiation of the Interim Agreement, the US intends to remove these tariffs on specific products, which may include generic pharmaceuticals, gems and diamonds, and parts for aircraft.

Additionally, India aims to purchase USD 500 billion worth of US energy products, aircraft and components, precious metals, technology items, and coking coal in the upcoming five years. This ambitious target underscores the intended expansion of trade relations between the two nations.

In late February, officials from the Indian Commerce Ministry indicated that the planned meeting of chief negotiators from both India and the US in Washington, DC, to finalize discussions on the trade deal would be rearranged. They noted that both parties believe the meeting should occur after each side has adequately assessed recent developments and their potential impacts.

Sources from the Commerce Ministry stated that the meeting will be rescheduled at a later date that is convenient for both sides, aiming for a productive outcome in the ongoing negotiations.

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