**New Delhi**: External Affairs Minister S. Jaishankar confirms intense negotiations with the US regarding trade, highlighting a strong case for a Bilateral Trade Agreement. Amidst impending tariffs, discussions explore mutual benefits and bolster energy ties, while India navigates trade dynamics with the current US administration.
India and the United States are currently engaged in what External Affairs Minister S. Jaishankar describes as “very active” and “intense” discussions regarding trade relations, drawing attention as the two nations navigate pending tariff decisions from the US government. This announcement was made during an interactive session hosted by the Asia Society on Wednesday.
Jaishankar’s comments come in light of impending reciprocal tariffs set to take effect on April 2, which have raised concerns among stakeholders and the general public alike. While the minister refrained from speculating on the immediate effects of the negotiations, he emphasised the compelling “business case” for a Bilateral Trade Agreement (BTA) between India and the US. Following a meeting between Indian Prime Minister Narendra Modi and US President Donald Trump last month in Washington, both leaders expressed commitment towards initiating a BTA negotiation by the fall of 2025.
“There’s a very active and intense trade discussion going on at this point of time,” Jaishankar stated, moderated by Kyung-wha Kang, President and CEO of the Asia Society. Concurrently, Brendan Lynch, the assistant US trade representative for South and Central Asia, is in India for a five-day visit, commencing from Tuesday.
Discussions surrounding the tariffs remain ongoing, though it remains unclear whether India will receive any kind of waiver as the new tariffs are enforced next week. Jaishankar acknowledged the challenging nature of the conversations but maintained that “there is a strong business case for a BTA with the US.” He remarked, “While noting the concerns, I wouldn’t prejudge the outcome,” urging patience as the negotiations progress.
Furthermore, Jaishankar addressed concerns specific to India’s agricultural market, stating that while it should not be viewed as an insurmountable obstacle, there is a meaningful potential for mutual benefits stemming from a BTA. He also indicated that India is pursuing separate free trade agreements with the European Union and the United Kingdom, highlighting these efforts as “very serious” and fairly advanced.
Regarding the strategic relationship between India and the US, the external affairs minister expects an enhancement in the defence partnership under the Trump administration. He observed, “We saw a president who is much more open and much more active in terms of building a security and defence partnership,” noting a significant willingness from the US to share military technologies with India.
Jaishankar also highlighted the importance of bolstering energy ties between the two nations. “We saw a president who clearly had an interest in ensuring that energy availability was more,” he explained, expressing India’s desire for a more stable and diverse supply of energy.
Reflecting on his interactions with US officials, Jaishankar remarked on the positive nature of these discussions, indicating overlap between India’s interests and the Trump administration’s energy strategies. The external affairs minister pointed out that India commenced importing liquefied natural gas (LNG) from the US decades ago but outlined aspirations to increase trade volumes, citing the reliability of the US as a stable supplier.
In terms of broader US trade policies, Jaishankar observed that India’s engagement strategies are shaped by the context of the current US administration’s stances. The bilateral trade dynamics are further complicated by the tariff measures recently introduced by President Trump, which have raised alarm not just in India but globally, with numerous countries preparing counteractions.
Establishing the significance of the trade relationship, the US was noted as India’s largest trading partner, with total bilateral trade reaching USD 190 billion in goods and services for the calendar year 2023. Additionally, during the financial year 2023-24, the US ranked as the third-largest source of foreign direct investment (FDI) into India, with contributions amounting to nearly USD 4.99 billion.
In recent developments surrounding trade policies, India has made strategic moves by lowering tariffs on select imported goods, such as Bourbon whiskey, wines, and segments related to electric vehicles (EVs). This is viewed as an initiative to signal India’s readiness for negotiations with the Trump administration, particularly in response to advice from US officials urging India to procure greater volumes of American oil, gas, and military assets to address the trade deficit, currently estimated at around USD 45 billion in India’s favour.
Source: Noah Wire Services
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