India to begin industry-Specific Trade Talks with US, Finalize in 6 Weeks

India will begin sector-specific trade discussions with the United States on Monday, aiming to finalize key details within the next six weeks, according to a New Delhi official. Virtual talks will commence this week, with both countries targeting clarity on areas where concessions can be made by the end of May, the official. The development was first reported by Indian media on Monday.

The talks follow Prime Minister Narendra Modi’s visit to the White House in February, during which India and the US expressed their intent to finalize the first phase of the trade agreement by fall. However, on April 2, President Donald Trump imposed a 26 percent reciprocal tariff on India before granting a 90-day reprieve to most nations.

Despite the tariffs, the Indian official emphasized that New Delhi is not overly concerned and believes that securing a trade deal remains a priority for Washington. Both sides are focused on setting realistic targets, the official added.

India last week said it would be able to sign a provisional trade deal with the Trump administration in 90 days, if the terms are satisfactory to both sides. India has, in recent weeks, dramatically modified its tariff regime, lowering import charges on more than 8,500 industrial products, including such American products as bourbon whiskey and luxury motorcycles produced by Harley-Davidson Inc. This step is regarded as redressing a long-standing grievance of the US president. Indian authorities are also pondering US calls to reduce import tariffs on US farm produce, though agriculture is a politically contentious issue in India.

Analysts have advised India to take caution with regard to the agriculture sector. “Many of Washington’s demands — such as weakening India’s minimum price support system for farmers, allowing genetically modified food imports, lowering agricultural tariffs, changing patent laws to extend drug monopolies, and permitting American e-commerce giants to sell directly to consumers — pose major risks,” said Ajay Srivastava, former trade official and Founder of the Global Trade Research Initiative.