US-India Trade Talks: Navigating Complex Policy Battles

In ongoing negotiations for a proposed bilateral trade agreement, the United States is pushing for significant policy changes from India. The American demands encompass wide-ranging areas from tariff reductions to regulatory overhauls that could potentially benefit U.S. firms and exporters, according to the Global Trade Research Initiative (GTRI).

One key area of focus is agriculture, where the U.S. is urging India to scale back its minimum price support programs for crops like rice and wheat, allow genetically modified imports, and lower farm tariffs. In the dairy sector, India's regulations on GM-free feed and facility registration are seen as barriers to American exports, given religious sensitivities related to animal feed.

The U.S. also aims to loosen restrictions on American retail giants such as Amazon and Walmart, who face challenges under India's foreign-owned e-commerce regulations. Amid these negotiations, India resists sweeping changes, citing the need to protect local retailers and maintain regulatory control in rapidly changing markets. As talks continue, the U.S. is expected to advocate for broad reforms in various sectors including tariffs, standards, digital rules, and service access.

(With inputs from agencies.)