India first to seal trade pact terms with Trump 2.0 as talks set to begin

India and the US have finalised the terms of reference for the proposed Bilateral Trade Agreement (BTA), laying a platform for formal negotiations to start. This is the first such framework finalised by the new Donald Trump administration for a trade deal.

Highlighting "a serious lack of reciprocity" in the trade relationship between the two nations, US Trade Representative (USTR) Jamieson Greer said, "These talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers."

Prime Minister Narendra Modi and US Vice President JD Vance had met a day earlier and discussed the pact.

"Goals for the US include increasing market access, reducing tariff and non-tariff barriers," the USTR said in a factsheet.


Clearly Defined ToRs
Goals include "negotiating a robust set of additional commitments to ensure long-term benefits," he said. Greer appreciated India's "constructive engagement," and said he looked forward to creating new opportunities for workers, farmers and entrepreneurs in both countries.

"The US is very clear what they want, and the ToRs (terms of reference) have clearly defined the scope of work," said a trade expert. "They want tariffs and non-tariff issues to be addressed. They have clarified what the core issues are."

India had earlier said it would protect its interests.

"India and the US are not just close strategic partners, but also complementary market economies. While India and the US have deep trade and economic ties, the spread and depth of these ties still have a long way to go before they can match the true potential for economic cooperation between the two countries," said a senior commerce and industry ministry official.

The two-tranche BTA is likely to be a package deal, covering goods, digital trade, movement of professionals, technical barriers to trade and intellectual property rights. Indian trade negotiators will begin their three-day visit to Washington on Wednesday for the talks.

"The BTA aims to enhance and expand bilateral trade, technology and economic ties in a mutually beneficial manner so the India-US ties, which have been called as the defining partnership of the 21st century by US Vice President Vance, can deliver for the greater prosperity and well-being for the people of the two countries," said the official quoted earlier.

Key Asks
On April 2, Trump announced sweeping reciprocal tariffs on imports from most countries, including a 26% levy on Indian goods. However, he put these - except a baseline tariff of 10% - on hold for 90 days, till July 8.