Context:
India is in the process of gearing up for bilateral talks with the U.S. after discussions between Prime Minister Narendra Modi and former U.S. President Donald Trump. Let me break it down for you more precisely.
Preparations for Bilateral Trade Agreement (BTA)
Key Developments
- Preliminary discussions among the Commerce Department and other government ministries have commenced.
- The purpose is to understand sector specific concerns, trade dynamics, and India’s strategic priorities.
- Ministries have been advised to consider:
- India’s prospective trade concessions (tariff reductions, market access).
- What India can ask for in return from the U.S. (favorable terms, market access).
Meeting Outcomes
- The first round of sectoral discussions has already been held with the Department of Heavy Industries concerning the automotive sector.
- More inter ministerial meetings are scheduled for next week.
- Industry consultations will follow after broad contours of the trade deal are laid out.
Way Forward
- The pace of negotiations should pick up once the U.S. administration’s trade counterparts are appointed.
- The Indian government, in the meantime, is readying itself to put reciprocal tariffs and trade negotiations in place before high level talks.
