Indian and U.S. officials have made progress in talks for a bilateral trade deal, according to statements on Saturday. The negotiations, held in New Delhi from March 26-29, were led by India’s commerce ministry and a U.S. delegation headed by Brendan Lynch, the assistant U.S. trade representative for South and Central Asia.
These discussions come as U.S. President Donald Trump plans to impose reciprocal tariffs starting April 2. India hopes to secure an exemption from these tariffs through the ongoing talks. Both countries aim to finalize the first part of the trade deal by fall 2025.
The joint statement from the talks highlighted progress in expanding trade and investment between the two nations. Additionally, India agreed to scrap a digital advertisement tax, addressing U.S. concerns. In a previous meeting, India pledged to buy more U.S. energy products and defense equipment.
Currently, the U.S. has a $45.6 billion trade deficit with India. While the U.S. has an average tariff rate of 2.2%, India’s tariff rate is much higher at 12%. Future discussions will focus on specific sectors, with virtual expert meetings scheduled in the coming weeks.