India embarks on trade liberalisation with the US

In New Delhi, India, on April 15, 2025, the country's trade secretary, Sunil Barthwal, announced the decision to pursue trade liberalisation with the United States. This announcement was made following the signing of terms of reference for the first part of a bilateral trade deal between the two nations. The U.S. and India have been working towards this agreement since February, aiming to formalise negotiations by the end of the year, with a target of achieving $500 billion in bilateral trade by the year 2030. Both countries have begun virtual discussions in April 2025, and face-to-face talks are planned for mid-May. Rajesh Agrawal, an additional secretary in the trade ministry, indicated that these early negotiations would take significant steps towards reducing tariffs and easing trade barriers. The current trade landscape shows that India is considering tariff cuts affecting over half of U.S. imports amounting to $23 billion, which represents a substantial easing of trade restrictions between the two countries. Despite the initiative to cut tariffs and improve trade relations, the backdrop includes ongoing complexities, notably criticisms from U.S. President Donald Trump who has previously labeled India as a 'tariff abuser'. This makes Prime Minister Narendra Modi's diplomatic efforts crucial as he seeks to balance the interests of Indian exporters with U.S. demands. During Modi's earlier visit to Washington, discussions centered around these trade negotiations and the importance of resolving trade disputes, particularly in tariffs. The trade deficit in favor of the U.S. reached approximately $45.6 billion, underscoring the importance of reaching a mutually beneficial agreement. India has also signaled its intention to enhance economic ties by committing to purchase more defense and energy products from the United States. This step is part of a broader strategy to strengthen bilateral relations and facilitate economic cooperation between the two nations.