NEW DELHI — India and the United States are preparing to start the sixth round of bilateral trade talks after a time of difficult ties. The meeting that everyone was looking forward to has been rescheduled to take place soon in New Delhi. It was put off because of escalating tariff tensions.
The two countries are trying to reach an agreement on the “first tranche” of a full bilateral trade agreement by the fall deadline they set for themselves, which is September to October. This latest push for talks comes after diplomatic efforts seem to have calmed the previous tensions sparked by the U.S. imposing high tariffs on Indian exports.
The sixth round of discussions was supposed to happen from August 25 to 29, but they were put on hold when the U.S. levied a 50% tariff on a number of Indian goods. India’s Chief Economic Adviser has said that this might lower the country’s GDP by as much as 0.6% this year. Even so, both governments have kept in touch through back channels and said they want to find a way to move forward.
The U.S. trade delegation’s new travel dates haven’t been officially confirmed yet, but the promise to start negotiations again shows that things are getting better between the two countries. India is anticipated to stick to its main “red lines,” especially when it comes to the dairy and agriculture sectors. New Delhi has said several times that it wants to protect the interests of its millions of farmers, livestock owners, fishers, and small and medium-sized businesses (MSMEs). The U.S. has been asking for more access to the Indian market for its dairy and agricultural goods, but India has always said no.
If the bilateral trade deal goes through, it is estimated that trade between the two countries will more than double, going from $191 billion to $500 billion by 2030. Even though there are still problems, the fact that both sides are willing to talk again shows that they both appreciate how important the economic alliance is to their strategies.