Context:
Commerce Secretary Sunil Barthwal stated that India and the U.S. are “proactively engaged” in discussions to boost bilateral trade.
Recent Developments
- Commerce Minister Piyush Goyal’s visit to the U.S. (March 4–6) included meetings with:
- U.S. Trade Representative Jamieson Greer
- U.S. Commerce Secretary Howard Lutnick
- Barthwal described these talks as “positive” and said discussions will continue.
Mission 500
- Talks are happening within the framework of Mission 500, aiming to:
- Increase bilateral trade from $200 billion to $500 billion
- Finalize a multi-sectoral bilateral trade agreement
Tariffs and Tesla
- Mr. Barthwal declined to comment on
- U.S. President Donald Trump’s plan to impose reciprocal tariffs from April 2
- Tariffs on premium U.S. electric vehicles, including Tesla
- Whether Tesla would receive further tax incentives beyond the existing export policy
Electric Vehicle Policy
- Scheme to Promote Manufacturing of Electric Passenger Cars:
- Offers 15% customs duty for manufacturers setting up production in India
- Notified in March 2024
U.S. Position
- Donald Trump’s remarks:
- Building a Tesla factory in India to avoid tariffs would be “unfair” to the U.S.
- Highlighted India’s high car import duties during PM Modi’s visit last month
- Agreed to continue working towards an early trade deal
Source: TH
