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    EYE ON INDIA                                                        OCTOBER 31, 2025       |  The Indian Eye                    6

                  India–US Trade Relations: Progress

                                   Amid Persistent Frictions

              As New Delhi and Washington edge closer to a long-awaited trade deal, deep-seated issues

            — from tariffs and visas to energy policy — continue to test the resilience of the world’s most

                                                    consequential economic partnership.

            OUR BUREAU                                                                                            Russian crude for nearly 35% of its
                                                                                                                  imports. Officials in New Delhi argue
            New Delhi
                                                                                                                  that the country cannot afford to let
                     hen Union Commerce                                                                           geopolitics dictate energy security.
                     Minister Piyush Goyal de-                                                                        Despite  these  tensions, both
            Wclared  in  Berlin  this  week                                                                       sides recognize the enormous po-
            that India and the United States were                                                                 tential of closer economic ties. The
            making “steady progress” on trade ne-                                                                 United States views India as a criti-
            gotiations, it signaled a cautious opti-                                                              cal growth partner and alternative
            mism that the two democracies might                                                                   manufacturing hub, while India sees
            finally be closing in on a long-delayed                                                               the US as a key source of investment,
            economic breakthrough. The talks,                                                                     technology, and advanced supply
            Goyal said, are “moving toward a fair                                                                 chains.
            and equitable agreement,” with both                                                                       The two countries are already
            sides aiming to push bilateral trade to                                                               collaborating  on  semiconductors,
            $500 billion by 2030.                                                                                 clean energy, and defense co-pro-
                But even as optimism grows, the                                                                   duction — sectors that could define
            relationship remains clouded by tar-                                                                  the next phase of their trade engage-
            iff disputes, visa restrictions, and di-   Union Minister of Commerce and Industry Piyush Goyal engages in a roundtable discussion   ment. However, experts warn that
            vergent policy priorities, particularly   with CEOs of German Mittelstand (SME) companies & Indian businesses in Berlin on Thursday   without structural reforms and pre-
            under the Trump administration’s re-                     (@PiyushGoyalX/ANI Photo)                    dictability in policy, trade will remain
            newed push for economic nationalism.                                                                  secondary to the political and de-
                                                                                                                  fense dimensions of the relationship.
                                                                                                                      Dr. Anupama Menon, a Del-
             RENEWED MOMENTUM AFTER           endra Modi and top Indian officials   continue  to  expand,  reflecting  the   hi-based trade analyst, notes, “India
                                                                                strategic depth of the partnership.
                                              underscored Washington’s intent
                 YEARS OF STALEMATE           to reset the tone. “Our relationship   However, the Trump adminis-  and the US have achieved strategic
                                              with India will only strengthen over   tration’s new H-1B visa policy has   convergence, but not yet econom-
                  rade ties between the two   the months ahead,” Gor posted on X   emerged as a major irritant. The re-  ic convergence. For trade to grow
                  nations have often mirrored   (formerly Twitter), following his first   cent imposition of a $100,000 fee per   meaningfully, both sides must move
            Tthe broader contours of their    official visit.                   visa application — now facing multi-  past short-term politics — whether
            strategic relationship — marked by    At the strategic level, both   ple court challenges — threatens to   it’s US visa fees or India’s tariff walls.”
            cooperation, but also contention.   countries view deeper trade ties as   upend the very foundation of India’s   For now, the mood is cautiously
            Since 2019, several rounds of talks   critical to countering China’s eco-  tech-driven exports.       hopeful. With both governments sig-
            have stalled over US tariffs on Indian   nomic influence in the Indo-Pacific.                         naling intent, the upcoming months
            steel, aluminum, and manufactured   Yet,  progress  remains  slow  because   The US Chamber of Commerce   could determine whether this re-
            goods,  and  India’s  retaliatory  duties   of fundamental differences in their                       newed momentum translates into
            on American agricultural and tech-  trade philosophies.             and several industry groups  tangible progress.
            nology products.                      India’s focus remains on domes-  have called the fee “unlawful      Minister Goyal’s optimism from
                According  to  officials,  recent   tic  manufacturing,  export  diversifi-                       Berlin  reflects  a  broader  sentiment
            discussions led by India’s Commerce   cation, and digital sovereignty, while  and economically self-defeat-  in New Delhi — that despite friction,
            Secretary Rajesh Agarwal and US   the US seeks greater market access   ing.” Indian IT professionals,   India–US trade ties are too import-
            counterparts have revived hope for a   and stronger intellectual property                             ant to derail. Yet, analysts point out
            “mini trade deal”, which could pave   protections. The divergence is stark  who make up over 70% of H-1B  that negotiations will remain com-
            the way for a more comprehensive   in sectors such as e-commerce, agri-  recipients, are expected to   plex as long as both sides continue to
            pact later. The proposed agreement   culture, and pharmaceuticals — ar-                               prioritize domestic politics over long-
            reportedly includes the reduction of   eas where Washington wants liber-  bear the brunt of the policy.  term partnership.
            US tariffs on Indian goods from 50%   alization and New Delhi demands                                     If New Delhi and Washington
            and increased access for American   regulatory autonomy.                Energy cooperation — once a   can finally align their economic am-
            farm and energy exports to India.     Despite this, bilateral trade   bright spot in bilateral relations —   bitions with their geopolitical part-
                The presence of newly appoint-  has already surpassed $190 billion   has also come under strain. The US   nership, the next decade could well
            ed US Ambassador Sergio Gor has   in 2024–25, making the US India’s   push for energy diversification aligns   belong to the India–US economic
            added diplomatic momentum. His    largest trading partner. Technolo-  with its strategic vision but poses   alliance  —  a  partnership  tested  by
            meetings with Prime Minister Nar-  gy, defense, and energy cooperation   challenges for India, which relies on   tariffs but driven by trust.

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