Overview

• India and the US have agreed on a broad framework for a Bilateral Trade Agreement (BTA), with sectoral discussions set to begin virtually in the coming weeks.
• The first phase of the BTA is targeted for completion by fall 2025, aiming to enhance market access, reduce trade barriers, and integrate supply chains.
• Despite India's concessions, including tariff reductions on select US products, no exemptions from the US reciprocal tariffs set to begin April 2 have been secured.
• The US tariffs could reduce India's exports by up to $7.3 billion annually, with additional economic risks stemming from tariffs on Venezuelan oil imports.
• The trade talks, described as cordial and collaborative, reflect both nations' commitment to achieving $500 billion in bilateral trade by 2030 under 'Mission 500.'