Prime Minister Narendra Modi and US President Donald Trump have agreed to initiate negotiations for a multi-sector Bilateral Trade Agreement aimed at increasing market access and reducing trade barriers. This decision follows Trump’s emphasis on the need for India to cut its high tariffs, which he claims hinder American business in the Indian market. Commerce Minister Piyush Goyal has recently returned from discussions in Washington regarding these trade relations.
Amid ongoing tariff threats from the United States, Indian Prime Minister Narendra Modi and US President Donald Trump have reportedly agreed to appoint representatives to negotiate a multi-sector Bilateral Trade Agreement (BTA). The negotiation aims to enhance market access, minimize tariff and non-tariff barriers, and strengthen supply chain integration.
This announcement followed Prime Minister Modi’s recent visit to Washington, where both nations committed to more than doubling their two-way commerce and establishing the preliminary framework for the BTA by the fall of 2025. The negotiations arise in the context of Trump’s assertion that India has agreed to significantly reduce its tariffs, which he claims are excessively high, limiting American access to the Indian market.
In remarks made from the Oval Office, Trump expressed concerns about America being “ripped off” by multiple countries, singling out India for its high tariffs. He described these tariffs as restrictive, stating, “You can’t even sell anything into India. It’s almost, it’s almost restrictive. We do very little business inside.”
Furthermore, Trump indicated that India is classified as a high-tariff nation, reiterating that reciprocal tariffs on countries that impose tariffs on American products will take effect on April 2. During his address to Congress, he labeled the tariffs imposed by India and other nations as “very unfair.”
Meanwhile, Commerce and Industry Minister Piyush Goyal has returned from discussions in Washington with US officials, including US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick, focused on trade matters. His recent engagements are part of ongoing efforts to facilitate improved bilateral trade relations between India and the United States.
The recent agreements between India and the United States to negotiate a multi-sector Bilateral Trade Agreement signify a crucial step toward enhancing economic collaboration. Trump’s remarks highlight ongoing concerns about trade imbalances, specifically the high tariffs imposed by India. As both countries embark on these negotiations, the aim will be to reduce trade barriers, promote greater commerce, and foster mutual economic benefits, paving the way for a stronger and more integrated supply chain.
Original Source: www.livemint.com
