Indian External Affairs Minister S. Jaishankar has confirmed active and intense discussions between India and the U.S. on trade as they anticipate the implementation of reciprocal tariffs. He expressed confidence in achieving a bilateral trade agreement by fall 2025. Furthermore, Mr. Jaishankar highlighted improvements in defense ties and energy collaboration, while also addressing existing challenges involved in negotiations.
On March 27, 2025, Indian External Affairs Minister S. Jaishankar stated that India and the United States are engaged in “very active” and “intense” discussions regarding trade. These dialogues are taking place amidst anticipation of U.S. President Donald Trump’s reciprocal tariffs that are scheduled to take effect on April 2. Mr. Jaishankar emphasized the importance of a bilateral trade agreement (BTA) between the two nations, referencing the previous discussions held between Prime Minister Narendra Modi and President Trump in Washington D.C. last month, which set a timeline for negotiations to begin by fall 2025.
During an interactive session hosted by Asia Society, Mr. Jaishankar noted that he would not speculate on the immediate outcomes of the trade negotiations. He expressed confidence in the negotiators to secure the best possible deal for India, acknowledging concerns regarding the country’s agricultural market but maintaining that challenges should not hinder progress. He also mentioned ongoing discussions regarding separate free trade agreements with the European Union and the United Kingdom, revealing that these negotiations are advanced and serious in nature.
On the topic of strategic ties with the U.S., Mr. Jaishankar indicated that New Delhi expects improvements in defense relations under the Trump administration, highlighting the administration’s openness in fostering a security partnership and sharing emerging technologies with India. Additionally, he pointed to the goal of strengthening energy ties with the U.S. to ensure a stable and diverse supply of energy, which is deemed essential for India’s long-term growth.
Mr. Jaishankar reflected on India’s history of importing Liquefied Natural Gas (LNG) from the U.S., voicing the intent to increase these imports due to the reliability of the U.S. as a supplier. He praised the Trump administration for fostering a favorable energy landscape and noted productive discussions concerning technology. He also remarked that overall policy changes by the Trump administration present opportunities for collaboration between the two countries.
As the U.S. engages in tariff disputes that have raised concerns about a potential global trade war, it is essential to consider India’s prior tariff reductions with developed nations. This includes India’s recent announcements for tariff adjustments related to sectors like Bourbon whiskey and electric vehicles, designed to signal willingness for trade negotiation flexibility. Moreover, the U.S. has been encouraging India to purchase additional American oil and military platforms to reduce a significant trade deficit favoring India of approximately $45 billion.
In 2023, bilateral trade between India and the U.S. reached $190 billion, making the U.S. India’s largest trading partner. In 2023-24, the U.S. was also reported as a major source of foreign direct investment (FDI) into India, accounting for about 4.99 billion in inflows. These developments indicate the deepening economic ties between India and the United States, showcasing the potential for enhanced trade relations moving forward.
In conclusion, the ongoing trade discussions between India and the United States signify a pivotal moment for bilateral relations, with both nations striving for a fruitful bilateral trade agreement by fall 2025. While challenges persist, particularly in sectors like agriculture, both countries remain committed to advancing their economic partnership. The investments and trade dynamics illustrate the strategic priorities that are shaping the future of India-U.S. relations under the Trump administration.
Original Source: www.thehindu.com
