US-India Trade Talks: Times of India Reports Key Reforms
As the trade talks progress, India's proposed reforms and the US's demands are expected to have a significant impact on the trade relationship between the two countries, with potential benefits for American companies looking to expand into the Indian market.
The US is pushing India to reform its trade and regulatory framework as part of the ongoing bilateral trade agreement talks, with demands including relaxed foreign investment rules in India's e-commerce sector and a potential scale back of India's minimum price support programmes for certain crops.
US President Donald Trump has claimed that India will drop its tariffs on imports from the US to "nothing", although no details were provided on the goods or sectors affected. The claim was made during a White House media interaction, where Trump stated that India has agreed to drop its tariffs as part of the trade deal negotiations.
The US and India have been negotiating a trade deal, which Trump administration officials have said could be one of the first to be announced. The deal is part of a slew of agreements under discussion between the US and its other trade partners. India has proposed eliminating tariffs on US steel, pharmaceutical products, and auto parts up to a certain volume as part of accelerated trade negotiations with the US.
The move aims to wrap a deal before President Trump's 90-day tariff pause expires. India is also offering to sign a mutual recognition agreement with the US on standards, which could lower compliance friction for American companies. This could be a significant development for Tesla, which has been eyeing India's EV market but has been held back by tariff hurdles.
The potential trade deal between the US and India could trigger supply chain shifts, capital flows, and expansion bets if it is inked. The US Treasury Secretary, Scott Bessent, said that the US is currently in talks with 17 of its 18 major trading partners, and expects to see deals being announced soon.