India and US move forward with bilateral trade agreement, but no talks on reciprocal tariffs

Subscribe to enjoy similar stories. New Delhi: India is focusing its US engagement on a trade deal rather than Washington's contentious plans to impose reciprocal tariffs. According to three senior government officials, India is not engaging with the US on reciprocal tariffs; instead, discussions remain centered on shaping a proposed Bilateral Trade Agreement (BTA).

The officials spoke after a high-level Indian delegation visited the US from 4-8 March to discuss the contours of the proposed BTA. "We are adhering to the commitments outlined in the joint statement issued on 13 February for the proposed BTA, which is targeted for completion by the fall of 2025," said the first among the three officials mentioned above on the sidelines of the release of trade data on Monday. India's focus on the bilateral trade agreement comes amid a lack of clarity on which countries the US plans to impose reciprocal tariffs.

There is a legal process for levying reciprocal tariff. The US is conducting an investigation and based on its report, will consider imposing a reciprocal tariff on specific items. Besides India, the US is also engaging with the UK for a trade agreement.

“Our visit was focused on the Bilateral Trade Agreement—how it will take shape, and what its key elements will be—all of which are under discussion. But one thing we are certain about is that we are moving forward in a positive direction on the BTA, and we are very open to doing a very good trade deal with the US. In fact, both countries are moving forward with the agreement in a positive manner," said the second official, who wished not to be named.