New Delhi: As India and the United States began a fresh round of trade talks this week, an early comment from Washington drew immediate notice. US Trade Representative Jamieson Greer described India as a “very difficult nut to crack”, though he also acknowledged that some of the proposals coming from New Delhi are among the “best offers” Washington has ever received. His comments came as a senior American delegation reached New Delhi for two days of negotiations aimed at building the first phase of a long-pending bilateral trade agreement.
He made the statement during a Senate Appropriations Subcommittee hearing in Washington on Tuesday (December 9). He pointed to India’s hesitation in opening its market to certain agricultural products, including corn, soybeans, wheat and cotton, which Washington identifies as priority row crops.
“They have been very difficult nut to crack… but they have been quite forward leaning… the type of offers that they have been talking to us about… have been the best we have ever received as a country,” he said, according to a PTI report.
He added that India has the potential to emerge as a strong alternative market.
The latest discussions come at a tense moment in the trade relationship. The Donald Trump administration has placed a 50 percent tariff on Indian exports to the United States, which includes a 25 percent penalty linked to India’s continued crude oil imports from Russia.
Washington wants these imports to end. Despite the friction, both sides have kept the negotiations moving and continue aiming to wrap up the first tranche of the deal this year.
A US delegation led by Deputy Trade Representative Rick Switzer began talks with Commerce Secretary Rajesh Agrawal on Wednesday (December 10). The two teams reviewed the ongoing negotiations and explored areas where they could move closer to a mutually agreeable trade pathway.
The Ministry of Commerce stated on social media that the discussions revolved around “India-US trade and economic ties, including the ongoing negotiations for a mutually beneficial Bilateral Trade Agreement”.
Among Indian exporters, the hope is that the new round of talks will help ease the steep duties presently hitting their shipments to the United States. Many manufacturers have worked to diversify their markets, but the United States remains vital, accounting for nearly 18 percent of India’s overall exports.
The tariff regime has tightened over time. Washington first imposed a 25 percent duty on several Indian products, citing a $46 billion trade deficit for 2024-25. After that, another 25 percent duty was added in response to India’s Russian oil purchases. New Delhi maintains that these tariff issues must be addressed if the opening phase of the trade agreement is to move forward.
The United States has been seeking reduced duties on almonds, corn, apples and several industrial products. India, however, has consistently maintained that agriculture and dairy cannot be opened for concessions, emphasising the need to protect farmers and small industries.
At the Pravasi Rajasthani Divas in Jaipur, Commerce and Industry Minister Piyush Goyal said negotiations with Washington were progressing. “Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” he told reporters.
The US delegation includes Brendan Lynch, assistant United States Trade Representative for South and Central Asia, who is the chief negotiator on the American side. India is represented by Joint Secretary Darpan Jain of the Commerce Department. This is the second visit by US officials since the revised tariffs came into effect. The earlier round was held on September 16.
Commerce Secretary Rajesh Agrawal has earlier said that the comprehensive Bilateral Trade Agreement will take time, though negotiations continue on a parallel framework deal that focuses specifically on tariff barriers affecting Indian exporters.
Two tracks of negotiations are now running simultaneously, with one focussing on the broader trade agreement and the other on a tariff-focussed framework deal. Both governments directed their negotiators in February to accelerate progress. So far, six rounds of talks have taken place, and the initial phase is expected to be completed by autumn 2025. The overall goal is to increase bilateral trade to $500 billion by 2030, up from the present $191 billion.
The United States remained India’s top trading partner for the fourth consecutive year in 2024-25, with bilateral trade touching $131.84 billion, including $86.5 billion in Indian exports. American markets make up roughly 18 percent of India’s goods exports, 6.22 percent of imports and 10.73 percent of total merchandise trade.
Merchandise exports to the United States, however, have seen strain. In October, they slipped 8.58 percent to $6.3 billion, marking the second month of consecutive decline.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
