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BUSINESS & TRADE JUNE 06, 2025 | The Indian Eye 36

TARIFF WAR

India, US Edge Closer to Trade Deal

Amid Global Tariff Turbulence

India and US are navigating a path toward a landmark trade agreement that could redefine

bilateral commerce in a world gripped by economic realignments.

OUR BUREAU think tanks to reinforce the urgency
of closing the BTA while ensuring
New Delhi/Washington, DC
India’s interests are protected in the
s global trade dynamics shift evolving trade architecture.
under the weight of rising pro- The visit also comes amid inten-
Atectionism and legal challenges sified geopolitical uncertainties, in-
to past policies, India and the Unit- cluding the fragmentation of global
ed States are on the cusp of sealing a supply chains and the reconfigura-
historic Bilateral Trade Agreement tion of alliances in the Indo-Pacific.
(BTA) — the first substantive frame- In this environment, India’s empha-
work of its kind between the world’s sis on “growth through trade” and
largest and fastest-growing democra- “resilient supply chains,” as articu-
cies. The momentum gained this week lated by Minister Goyal, reflects its
with Indian Deputy National Security strategy to position itself as a stabi-
Advisor Vikram Misri’s visit to Wash- lising force in the global economy.
ington is reinforcing the deepening Goyal added, “Our journey to Viksit
strategic and economic ties between Bharat by 2047 hinges on speed, skill,
New Delhi and Washington. and scale — and trade will be one of
According to senior govern- the cornerstones of that vision.”
ment sources, a U.S. delegation is For the U.S., India is not just a
scheduled to visit India on June 5-6 trading partner but also a vital ally
to further negotiations on the BTA. in balancing Chinese economic and
The Indian government, following strategic influence. Both countries
high-level meetings held in April Union Commerce and Industry Minister Piyush Goyal meets United States Secretary of Com- have ramped up defense coopera-
in Washington, has described the tion, technology collaboration, and
talks as “fruitful,” with both sides merce Howard Lutnick (ANI) people-to-people engagement. The
eyeing a preliminary agreement be- BTA, though primarily economic, is
fore July. As part of the roadmap, May 28, a U.S. federal court in Man- term geopolitical optics. expected to catalyze broader strate-
leaders have unveiled a bold trade hattan struck down a reciprocal tariff India’s trade surplus with the gic alignment, especially in sectors
target — Mission 500 — aimed at regime imposed by former President U.S. stood at USD 41.18 billion in like semiconductors, pharmaceuti-
boosting bilateral trade to USD 500 Donald Trump, ruling that the tar- goods during the 2024-25 fiscal year, cals, green energy, and digital trade.
billion by 2030. iffs were unlawful and violated both with total bilateral trade valued at Despite the optimism, key chal-
This week, speaking at the Con- domestic and international law. The USD 131.84 billion — making the lenges remain. Indian officials are
federation of Indian Industry’s (CII) decision, which declared that emer- U.S. India’s top trading partner for reportedly reviewing the implica-
Annual Business Summit, Commerce gency economic powers could not the fourth year in a row. This eco- tions of the U.S. court order on past
and Industry Minister Piyush Goyal be used to impose such trade restric- nomic heft is undergirded by shared reciprocal tariffs, even as domestic
confirmed that the BTA talks are on tions without Congressional approval, democratic values, growing strategic analysts caution against rushed com-
track. “We are well on our way to fi- has prompted Indian trade experts to cooperation, and a mutual interest mitments. Balancing market access
nalising the first tranche of the trade urge caution. in stabilising global supply chains for U.S. goods and services with the
deal with the United States,” Goyal Ajay Srivastava, founder of the disrupted by geopolitical shocks and protection of domestic industries —
said. He noted that this agreement Global Trade Research Initiative protectionist backlash. particularly agriculture and pharma-
complements India’s broader trade (GTRI), has warned that India must Vikram Misri’s visit to Washing- ceuticals — will be a tightrope walk
agenda, which includes ongoing ne- avoid any deal shaped by threats or ton this week adds an important dip- for Indian negotiators.
gotiations with the European Union, reactive tariff measures. “With the lomatic layer to these developments. With the clock ticking toward a
United Kingdom, and the EFTA Trump tariffs standing on shaky legal Misri, a veteran diplomat and former possible signing before July, and with
countries. He also cited India’s rise ground, India must pause and reas- ambassador to China, is playing a Vikram Misri’s strategic diplomacy
as a key global player. “By 2027, we sess its negotiation strategy before key role in aligning India’s strategic unfolding in real time, the coming
will be the world’s third-largest GDP. committing to an agreement that and economic priorities with its most weeks could well usher in a new era
Despite global turbulence, India con- could disproportionately favour U.S. critical international partners. His of India-U.S. cooperation — one
tinues to power global growth.” interests,” Srivastava said. He added engagements in Washington are ex- that transcends tariffs and takes aim
The optimism surrounding the that any BTA must be crafted with an pected to include meetings with U.S. at a shared future of inclusive, rules-
deal comes at a critical juncture. On eye on long-term balance, not short- trade officials, policymakers, and based global growth.

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