According to persons with knowledge of the situation, india and the US have decided on a framework to start official talks for a comprehensive trade agreement that covers 19 important sectors, such as crucial minerals, e-commerce, data storage, and agriculture, Bloomberg reported.
The preliminary understanding, which was concluded this week, provides a framework for a possible deal that may shield india from increased US import taxes. Now, discussions will start on topics that have historically proven politically delicate in india, like the role of big tech in e-commerce, India's data localization regulations, and market access for US farm products.
The preliminary understanding, which was concluded this week, provides a framework for a possible deal that may shield india from increased US import taxes. Now, discussions will start on topics that have historically proven politically delicate in india, like the role of big tech in e-commerce, India's data localization regulations, and market access for US farm products.
The news comes months after US Vice President JD Vance and prime minister Narendra Modi pledged to complete the first phase of a trade treaty by fall 2025 during their meeting in New delhi on april 21.
It should be mentioned that President Donald Trump's 26% reciprocal tariff on indian imports has been temporarily halted by the US, with a final decision pending the conclusion of discussions.
Access to agriculture is still one of the most controversial topics. Indian farmers and officials fiercely oppose genetically modified products like corn and soybeans, which are staples of American exports. The US is urging india to remove these obstacles.
It should be mentioned that President Donald Trump's 26% reciprocal tariff on indian imports has been temporarily halted by the US, with a final decision pending the conclusion of discussions.
Access to agriculture is still one of the most controversial topics. Indian farmers and officials fiercely oppose genetically modified products like corn and soybeans, which are staples of American exports. The US is urging india to remove these obstacles.
Similarly, India's highly protected retail and data ecosystems are being challenged by international IT behemoths like Amazon, Walmart, Google, and Meta, who are advocating for changes to e-commerce and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital regulations.
Rules pertaining to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital services, regulatory procedures, product origin, and corruption will also be discussed. In addition to avoiding punitive tariffs, the two parties hope to provide the groundwork for increasing bilateral commerce from the present $127.6 billion to $500 billion by 2030.
According to sources, the goal is clear: to create a trade agreement that strikes a compromise between political realities and business ambition, even though neither party has disclosed a precise timetable or the details of the first phase.
Rules pertaining to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital services, regulatory procedures, product origin, and corruption will also be discussed. In addition to avoiding punitive tariffs, the two parties hope to provide the groundwork for increasing bilateral commerce from the present $127.6 billion to $500 billion by 2030.
According to sources, the goal is clear: to create a trade agreement that strikes a compromise between political realities and business ambition, even though neither party has disclosed a precise timetable or the details of the first phase.
