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Context:
- India and the US are engaging in intense discussions over the first phase of the Bilateral Trade Agreement (BTA).
- A US delegation, led by Assistant USTR Brendan Lynch, is holding three-day discussions with India’s Commerce Department in New Delhi.
- The goal is to finalize the framework of the deal by month-end, aiming for completion by fall 2024.
Key Discussion Points
- Digital Services & Data Localisation
- The US is concerned about India’s data localisation norms, which mandate storing data within the country under the Digital Personal Data Protection (DPDP) Act.
- US tech companies argue that this could create business uncertainty and limit cross-border data flow.
- Tariff Reductions on Goods
- Both sides are negotiating lower tariffs on various exported and imported goods to enhance trade.
- US Chamber of Commerce (USCC) Concerns
- USCC has raised concerns over strict local content requirements in India.
- It has urged for “competitive neutrality” in key sectors, ensuring equal treatment for foreign and domestic companies.
- India’s Priorities
- India is pushing for easier movement of skilled professionals to the US, seeking improved visa access and employment opportunities.
Next Steps
- Talks are expected to conclude by the end of the month, with an ambitious deadline set for finalizing the trade agreement by fall 2024.
- The outcome will shape India-US economic relations, particularly in digital trade, tariffs, and workforce mobility.
