India-US Trade Talks: Delhi to Seek Hi-Tech Access and Tariff Cuts in Proposed Pact
05 May 2025: As discussions continue for a potential bilateral trade agreement between India and the United States, sources indicate that India is poised to request significant concessions from Washington, including easier access to critical American technologies and a reduction in import duties for several key Indian sectors.
According to individuals familiar with the ongoing deliberations, India aims to achieve a level of access to advanced technologies comparable to that granted by the US to its close allies such as Australia, the United Kingdom and Japan. This push for relaxed export controls is expected to focus on vital areas like telecommunications equipment, biotechnology, artificial intelligence, pharmaceuticals, quantum computing, and semiconductors. Greater access to these technologies is seen as crucial for India’s technological advancement and economic growth.
In parallel, India is also anticipated to seek favourable tariff treatment for its labour-intensive industries. This includes requesting duty concessions for a range of products, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. Lowering trade barriers in these sectors could provide a significant boost to India’s export market and support employment.
Conversely, the United States is reportedly seeking its own set of concessions within the proposed agreement. These are understood to include reduced tariffs on certain industrial goods, automobiles (with a particular focus on electric vehicles), wines, petrochemical products, dairy items, and agricultural products like apples and tree nuts.
The ongoing negotiations reflect both countries’ efforts to deepen economic ties and address existing trade imbalances through a comprehensive trade pact. The successful outcome of these discussions could significantly alter the trade landscape between the two nations, fostering greater collaboration in technology and opening new markets for goods and services.
