India and US Enter Crucial Phase in Trade Talks

The Indian delegation, headed by chief negotiator Rajesh Agarwal, is in Washington for vital trade discussions with the United States, according to an official statement on Thursday.

These talks are critical as both nations aim to finalize an interim trade agreement before the July 9 deadline. Notably, contentious issues remain in sectors like agriculture and dairy, where India faces challenges providing duty concessions to the US. Despite this, both parties are keen to finalize the deal to potentially double bilateral trade from USD 191 billion to USD 500 billion by the year 2030.

The US had imposed additional tariffs on Indian goods, which were suspended until July 9. However, challenges remain, notably with the US seeking concessions on goods like automobiles and dairy, while India seeks advantages in textiles and other labor-intensive sectors. Negotiations are ongoing, with meetings both virtual and physical as they work towards a September-October deadline for the first tranche of the bilateral trade agreement.

(With inputs from agencies.)