US-India Bilateral Trade Agreement (BTA) Negotiations
Prime Minister Narendra Modi and US President Donald Trump agreed to initiate negotiations for a "mutually beneficial" bilateral trade agreement (BTA) with the goal of finalizing it within the next seven to eight months.
Reciprocal Tariffs and Economic Impact
- President Trump announced a policy of reciprocal tariffs, affecting countries like India.
- US-India trade tensions highlighted by the high tariffs imposed by India, with India charging significantly higher tariffs on products like motorcycles compared to the US.
US-India COMPACT Initiative
A new initiative aimed at driving transformative changes across key cooperation areas, focusing on military partnership, commerce, and technology.
Mission 500: Bilateral Trade Target
- The US and India set a target to more than double bilateral trade to $500 billion by 2030.
- Plans to negotiate a multi-sector BTA by 2025, focusing on market access, tariff barriers, and supply chain integration.
Tariff Reductions and Market Access
- The US acknowledged India's recent efforts to lower tariffs on American products like bourbon whisky.
- Efforts to enhance market access for US agricultural goods and increase trade in industrial and labor-intensive manufactured products.
Defense and Energy Cooperation
- Plans to sign a 10-year "Framework for the US-India Major Defense Partnership," including potential sales of F-35 stealth fighters.
- Expansion of the US as a major supplier of crude oil, petroleum products, and LNG to India, with energy purchases expected to rise.
Civil Nuclear Agreement and Strategic Initiatives
- Commitment to implement the US-India 123 Civil Nuclear Agreement with US-designed nuclear reactors in India.
- Launch of the US-India TRUST initiative to foster collaboration in advanced technologies and the Strategic Mineral Recovery Initiative for critical minerals.
Other Key Takeaways from the US-India Talks
- Deportation and Extradition: India's readiness to take back illegal migrants and extradition of Tahawwur Rana to India.
- Space Cooperation: NASA-ISRO mission for Indian astronauts and early launch of the NISAR mission.
