Piyush Goyal meets U.S. Commerce Secretary in Washington to debate proposed commerce pact-OxBig News Network

Union Minister of Commerce and Industry Piyush Goyal with U.S. Secretary of Commerce Howard Lutnick throughout a gathering within the USA. File
| Photo Credit: X/@piyushgoyal

Commerce and Industry Minister Piyush Goyal on Friday (May 23, 2025) held his second assembly with U.S. Commerce Secretary Howard Lutnick in Washington to debate the proposed bilateral commerce settlement presently underneath negotiation between the 2 international locations.

On May 20, 2025, Mr. Goyal held a gathering with Secretary Howard Lutnick to expedite the talks on the primary section of the commerce pact.

“Held a constructive assembly with Secretary @HowardLutnick for a mutually useful commerce settlement. Committed to enhancing alternatives for our companies and folks,” Mr. Goyal mentioned in a submit on X.

The assembly assumes significance, as each the international locations are taking a look at finalising an interim commerce pact by July 8, 2025. The four-day discussions between the chief negotiators have additionally concluded in Washington on May 22, 2025. In the interim commerce deal, New Delhi is pushing for full exemption from the 26% reciprocal tariff on Indian items.

The U.S. on April 2, 2025, imposed a further 26% reciprocal tariff on Indian items however suspended it for 90 days until July 9, 2025. However, the ten% baseline tariff imposed by America stays in place.

Owing to the 90-day suspension of the 26% extra import obligation, Indian exporters are at current paying simply 10% baseline tariffs, as a substitute of 26% earlier proposed.

At current, the Trump administration requires approval from the U.S. Congress to carry tariffs beneath the MFN (most favoured nation) charges. But the administration has the authority to take away the reciprocal tariffs imposed on plenty of international locations, together with India.

India might have a look at sure commitments from the U.S. on the obligation concessions for its labour-intensive sector within the first tranche of the proposed Bilateral Trade Agreement (BTA). Both international locations have fastened a deadline to conclude the primary section of the pact by fall (September-October) of this yr to greater than double bilateral commerce to $500 billion by 2030.

To enhance bilateral commerce, India is looking for obligation concessions for labour-intensive sectors like textiles, gems and jewelry, leather-based items, clothes, plastics, chemical compounds, shrimp, oil seeds, chemical compounds, grapes, and bananas within the proposed pact with America.

On the opposite hand, the U.S. needs obligation concessions in sectors comparable to sure industrial items, vehicles (electrical automobiles particularly), wines, petrochemical merchandise, dairy, and agriculture gadgets comparable to apples, tree nuts, and GM (genetically modified) crops.

While the import of GM crops from the U.S. continues to stay a non-starter owing to regulatory norms in India, New Delhi is open to the import of non-GM merchandise comparable to Alpha alpha hay (a sort of cattle feed).

The U.S. remained India’s largest buying and selling accomplice for the fourth consecutive yr in 2024-25, with bilateral commerce valued at $131.84 billion. The U.S. accounts for about 18% of India’s whole items exports, 6.22% of imports, and 10.73% of the nation’s whole merchandise commerce.

With America, India had a commerce surplus (the distinction between imports and exports) of $41.18 billion in items in 2024-25. It was $35.32 billion in 2023-24, $27.7 billion in 2022-23, $32.85 billion in 2021-22, and $22.73 billion in 2020-21. The U.S. has raised considerations over this widening commerce deficit.