The Indian delegation, led by chief negotiator Rajesh Agrawal, successfully concluded negotiations on the agreement and returned from Washington earlier this month.
The second round of talks regarding the proposed bilateral trade agreement (BTA) between India and the United States is set to begin soon. A senior official from the Ministry of Commerce revealed on Thursday that another Indian delegation is preparing to depart for Washington, where discussions on the first and interim phases of the agreement will proceed.
Earlier this month, a delegation from India returned from discussions in the US, with Rajesh Agrawal, Special Secretary in the Department of Commerce, serving as the chief negotiator.
Dates for the next meeting to be decided soon.
While the dates for the delegation's visit to Washington have not yet been finalized, sources suggest the visit could take place next week. This visit is considered crucial, as the US has postponed the 26 percent additional tariff on India until August 1st. Therefore, these negotiations could be quite decisive for the business relations between the two countries.
Preparation to complete the first phase of the agreement by autumn
Rajesh Agrawal stated on Thursday that India is trying to finalize the trade agreement with the US as soon as possible. He mentioned that the goal of the negotiations is to complete the first phase of the agreement by this autumn, i.e., September-October. Before that, both countries are also working towards finalizing an interim agreement.
India has implemented 14 FTAs so far
Agrawal informed that India has so far implemented more than 14 free trade agreements (FTAs) with 26 countries. He said that India's focus is now on major markets with significant export and investment potential.
India has recently concluded an agreement with the UK. Additionally, it is in the final stages of talks with the European Union (EU). He added that the pace of negotiations with the US is also being accelerated to achieve a concrete outcome soon.
Which issues will be at the center of the discussions?
According to officials, the upcoming visit of the Indian delegation will cover several issues, including:
- High tariffs on agricultural products from India to the US
- Data access for US companies in India
- Technology transfer and manufacturing collaboration between the two countries
- Recognition process for medical devices and pharma products from India
- How to reduce tariffs and non-tariff barriers
These issues have long been on the agenda for discussions between the two countries, and their resolution could greatly benefit bilateral trade.
The US is India's largest export market
The US accounts for approximately 18 percent of India's total exports, making it India's largest export destination.
India also imports a significant amount from the US, including aircraft, defense equipment, oil and gas technology, and medical machines.
Therefore, if a trade agreement is reached, trade between the two countries could increase in terms of both volume and value.
Talks are also underway with Chile, Peru, and New Zealand
Rajesh Agrawal mentioned that India is negotiating trade agreements not only with the US but also with Latin American countries. These include countries like Chile and Peru.
Furthermore, India has recently signed trade agreements with Australia and the United Arab Emirates (UAE), which are now in effect. The process of discussions with New Zealand is also ongoing.
Information given at the Export Logistics Program
Rajesh Agrawal was addressing a program on 'Export Logistics,' where he said that India's trade strategy has now become comprehensive, and the government is working towards enhancing trade cooperation with every major market.
He said that if India wants to increase its manufacturing capacity and exports, it must be a part of more and more agreements like FTAs and BTAs.
