India and the United States concluded discussions on a Bilateral Trade Agreement (BTA) but failed to reach an immediate consensus on tariff relief. While both nations aim to finalize a trade deal by fall 2025, no tariff exemptions were indicated. The new US tariffs, set to take effect on April 2, could significantly impact India’s exports, including oil imports from Venezuela. India Ratings and Research estimates a potential decline of up to $7.3 billion in India’s exports to the US in the next fiscal year.
The latest round of trade discussions between India and the United States concluded without a resolution on tariff exemptions, despite both sides working toward finalizing a Bilateral Trade Agreement (BTA) by fall 2025. The discussions focused on reducing trade barriers and enhancing market access, yet there was no indication of an immediate relief from tariffs for India.
The US tariffs, set to take effect on April 2, 2025, are expected to impact India’s exports, including oil imports from Venezuela. According to a report by India Ratings and Research, these new tariffs could lead to an export decline of up to $7.3 billion in the next fiscal year. The move adds further strain to trade relations, as India has been attempting to de-escalate tensions with the US over the past two months.
Key Trade Concerns and Impact on India
The Indian government has been negotiating for better terms to counterbalance the impact of new US trade policies. However, the lack of an immediate resolution means that key sectors like textiles, pharmaceuticals, and petroleum products could face heightened challenges in the US market.
While both nations reaffirmed their commitment to enhancing trade cooperation, Indian officials remain concerned about the long-term economic impact of the new US tariff regime. Industry leaders in India have urged for swift diplomatic engagement to mitigate potential losses and ensure continued market access.
Bilateral Trade Agreement in Focus
Despite ongoing trade tensions, India and the US have committed to finalizing a broader trade agreement by the end of 2025. The deal aims to provide structured tariff frameworks and market access improvements for both economies. However, experts note that further negotiations will be crucial to securing long-term stability in bilateral trade relations.
The outcome of these discussions will significantly shape India’s economic strategy in dealing with global trade shifts. As both nations continue to engage, stakeholders from industries impacted by the tariffs are keenly observing the developments for possible policy adjustments and market diversification strategies.
For now, Indian exporters are bracing for the effects of the new tariffs while awaiting further diplomatic engagement on tariff relief in future trade discussions.
