India and the United States continue to hold discussions on a mutually beneficial bilateral trade agreement, the Commerce Ministry said on Friday, rejecting reports that talks had been put on hold. “We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement,” the ministry said in a statement.
Last month, both countries announced a framework for an Interim Agreement, reaffirming their commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025. The agreement includes provisions for additional market access and aims to strengthen resilient supply chains.
Under the Interim Agreement, India will eliminate or reduce tariffs on US industrial and agricultural goods, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine, and spirits. The United States will apply a reciprocal tariff of 18% on Indian goods such as textiles, leather, footwear, plastics, machinery, and certain chemicals. Subject to the agreement’s successful conclusion, the US will also remove tariffs on a wide range of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
In a related development, the Trump administration has launched fresh Section 301 investigations into alleged unfair trade practices by 16 major trading partners, including India, China, and Bangladesh. The probe, following a US Supreme Court ruling that invalidated previous tariffs, could result in new levies on countries such as China, the EU, Japan, South Korea, Mexico, and India by this summer. Other partners under review include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway. Notably, Canada, the US’s second-largest trading partner, has been excluded.
(With inputs from ANI)