Amid the postponement of bilateral trade talks scheduled for August 25, the US is advocating for increased market access in sensitive sectors, such as agriculture and dairy. This greater access has been denied by India, as it threatens the livelihoods of small and marginal farmers.
India has affirmed that it will not hamper the interests of farmers and cattle rearers, news agency PTI reported.
The US team was initially set to visit India on August 25 for the next round of negotiations on the proposed bilateral trade agreement, but the visit is likely to be delayed to a later date.
India-US trade talks
Five rounds of talks on the proposed bilateral trade agreement (BTA) have been completed so far, with a US team scheduled to visit India for the sixth round. The talks were scheduled to be conducted from August 25-29. “This visit is likely to be rescheduled,” PTI quoted an official, who did not wish to be named.
The postponement of trade talks becomes more important as the US has announced a whopping 50 per cent tariff on Indian goods.
The US and India have announced plans to finish the first phase of bilateral trade talks by September-October of this year. They aim to more than double their bilateral trade to $500 billion by 2030, up from the current USD 191 billion.
US tariffs on India
The 25 per cent tariff on Indian goods exported to the US took effect on August 7. An additional 25 per cent tariff, announced as a penalty for India purchasing crude oil and military equipment from Russia, will be implemented from August 27 onwards.
India-US trade – Where do numbers stand?
According to commerce ministry data, the country’s exports to the US increased 21.64 per cent to USD 33.53 billion during April-July, while imports rose 12.33 per cent to USD 17.41 billion.
The US was India’s largest trading partner in the April-July period of the current fiscal year, with $12.56 billion in bilateral trade. India’s exports to America have been recording positive growth since April this year.