India and the United States have made significant strides toward a bilateral trade deal following several days of discussions in New Delhi, officials announced on Saturday. The negotiations focused on lowering tariffs and easing non-tariff trade barriers, marking progress in fostering stronger economic ties between the two nations.
Talks took place from March 26-29, led by representatives from India’s commerce ministry and a U.S. delegation led by Brendan Lynch, the Assistant U.S. Trade Representative for South and Central Asia.
In a separate meeting, U.S. Deputy Secretary of State Christopher Landau met with Indian Foreign Secretary Vikram Misri to discuss reducing trade barriers and ensuring a "fair and balanced" economic partnership. Their discussions also covered expanding defense and technology cooperation to enhance regional security.
Landau expressed appreciation for India’s efforts in addressing illegal immigration to the United States and encouraged continued collaboration, according to a statement from the U.S. State Department.
The talks come at a crucial time as U.S. President Donald Trump prepares to enforce reciprocal tariffs on multiple trading partners starting April 2. India, which is seeking an exemption from these tariffs, hopes to finalize the first phase of the trade agreement by autumn.
“The successful conclusion of discussions signals progress in expanding India-U.S. bilateral trade and investment relations, contributing to economic growth, security, and innovation in both countries,” India's commerce ministry stated.
Last month, during Prime Minister Narendra Modi’s visit to Washington, India committed to increasing its purchases of U.S. energy and defense products. Both nations also set an ambitious goal of expanding bilateral trade to $500 billion by 2030.
Trump has frequently criticized India's high tariffs, labeling the country a "tariff king." The U.S. seeks reduced levies on products such as agricultural goods, alcoholic beverages, and automobiles, while also pushing for broader market access for American firms.
India’s Trade Minister Piyush Goyal recently visited Washington for discussions with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Moving forward, sector-specific expert engagements will commence virtually, followed by in-person negotiations.
The U.S. currently faces a $45.6 billion trade deficit with India. While the average U.S. trade-weighted tariff rate is around 2.2%, India’s stands at a significantly higher 12%, according to World Trade Organization data.