India, US to begin trade pact talks in Washington on April 23 under 90-day tariff pause: Report

As the clock ticks on a 90-day tariff pause, India is moving swiftly to solidify terms for a long-awaited trade pact with the United States. With around 19 chapters under discussion ranging from tariffs to customs facilitation, a top Indian delegation is headed to Washington next week to iron out sticking points and formally kick off negotiations for a bilateral trade agreement (BTA) that could reshape the economic playbook between the two nations, as per a PTI report.

India's chief negotiator, Additional Secretary Rajesh Agrawal, will lead the delegation for the first in-person talks. Agrawal, who was named the next commerce secretary on April 18, is set to take over the role on October 1. The three-day talks begin April 23 in Washington.

“Both sides will discuss the level of ambition. The ToRs will be further developed and discussed. What will be the pathway for talks? The ToRs will include issues like tariffs, non-tariff barriers, rules of origin, and regulatory matters,” PTI reported. Key items on the agenda include the pact's framework and scheduling to meet the tight 90-day timeline, as per the report.

This round of discussions is crucial. A senior government official had previously indicated that a “win-win” interim trade agreement could be on the table within the tariff reprieve announced by the Trump administration, PTI reported.

The momentum follows last month’s official-level engagements in India, where Brendan Lynch, Assistant US Trade Representative for South and Central Asia, held a five-day round of talks from March 25 to 29.

Both sides are pushing to use the tariff pause, announced by President Trump on April 9, to fast-track the negotiations. Commerce Secretary Sunil Barthwal echoed the urgency, stating on April 15 that India would “try to close the negotiations as quickly as possible.”

Since March, India and the US have been working toward a phased trade agreement, aiming to wrap up the first phase by September-October. The broader ambition is to more than double bilateral trade from the current $191 billion to $500 billion by 2030.

The agreement could bring sharp reductions or eliminations in customs duties on a wide array of goods. It also aims to simplify rules for services and investment.

The US is pressing for concessions in sectors like industrial goods, electric vehicles, wines, petrochemicals, dairy and certain farm products. India, on the other hand, seeks lower duties on exports such as apparel, textiles, gems and jewellery, leather, plastics and seafood.

Between 2021-22 and 2024-25, the US remained India's top trading partner. It currently accounts for about 18% of India’s exports and over 10% of overall bilateral trade.

India posted a goods trade surplus of $41.18 billion with the US in 2024-25, up from $35.32 billion in 2023-24. However, Washington has flagged the growing deficit as a concern.

To counterbalance the deficit and shore up domestic manufacturing, the US imposed broad tariffs on April 2, including a 26% duty on Indian goods. These were suspended until July 9, creating the window now being used for negotiations.

India’s key exports to the US in 2024 included drug formulations ($8.1 billion), telecom instruments ($6.5 billion), and precious stones ($5.3 billion). On the import side, crude oil ($4.5 billion), petroleum products ($3.6 billion), and coal ($3.4 billion) topped the list.