Trade thaw likely as Indian team heads to US after Gor’s Delhi talks

Signalling a potential thaw in trade relations, a team of senior Indian officials will visit the US this week to hold talks with the Trump administration on the proposed bilateral trade agreement, an official said in New Delhi.

“The Indian team will visit the US this week,” the official said, adding that the trade talks are progressing well. The development follows meetings between US Ambassador-designate to India Sergio Gor and Prime Minister Narendra Modi, External Affairs Minister S Jaishankar and Commerce and Industry Minister Piyush Goyal.

The trade pact was announced in February by PM Modi and President Donald Trump during Modi’s visit to the US, with the objective of doubling bilateral trade between the two countries to $500 billion.

India and the US had agreed to conclude the first tranche of the proposed trade pact by the fall (October-November) of this year. The official said both sides remain hopeful of meeting that target. So far, five rounds of negotiations have been completed.

In September, Goyal led an official delegation to the US, where he met with United States Trade Representative (USTR) Jamieson Greer and Gor. The Commerce and Industry Ministry said the delegation held constructive discussions with the US government on various aspects of the agreement. Both sides exchanged views on the possible contours of the deal and agreed to continue engagements to achieve an early, mutually beneficial conclusion.

According to reports, India has offered concessions to the US, including easing some restrictions on the import of genetically modified corn and increasing purchases of American defence and energy products.

These discussions have taken place amid heightened tensions following Washington’s imposition of a 25 per cent reciprocal tariff and an additional 25 per cent penalty on Indian goods in response to India’s purchase of Russian crude oil — resulting in a total 50 per cent import duty on Indian exports to the US.

Analysts estimate that the tariffs could shave 0.5 per cent off India’s GDP. Bilateral ties hit a low in late August after a planned US delegation visit to New Delhi for the sixth round of talks (scheduled for August 25-29) was abruptly postponed amid escalating tensions.

India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July, according to Commerce Ministry data.

Exporters said the higher tariffs would start biting now, as the extra 25 per cent duties came into force only at the end of August. September trade data is expected later this week.