31 May,2026 05:19 PM IST | New Delhi | mid-day online correspondent
The US administration announced a uniform 10 per cent tariff on imports from all countries for a temporary period. Representational Pic/File/iStock
Senior trade negotiators from India and the United States will begin a four-day round of discussions in New Delhi on Monday to finalise details of an interim trade agreement between the two countries, reported the PTI.
The US delegation will be led by chief negotiator Brendan Lynch, while India's team will be headed by Darpan Jain, Additional Secretary in the Department of Commerce.
The discussions aim to finalise the legal text and operational details of the interim trade pact, which is considered the first phase of a broader India-US Bilateral Trade Agreement (BTA), the news agency reported.
According to the Commerce Ministry, both sides will discuss market access, non-tariff barriers, customs procedures, trade facilitation, investment promotion and economic security cooperation.
The framework for the agreement was first outlined in a joint statement issued by India and the US on February 7, 2026.
Since the framework was agreed, the global trade environment has changed significantly.
The original proposal included a reduction in tariffs on Indian exports to the US. However, developments in the United States, including a Supreme Court ruling against certain reciprocal tariffs introduced under the International Emergency Economic Powers Act (IEEPA), altered the tariff structure, according to the PTI.
Following the ruling, the US administration announced a uniform 10 per cent tariff on imports from all countries for a temporary period.
These changes may lead both countries to revisit parts of the original framework during the current negotiations.
As part of the proposed agreement, India has offered to reduce or eliminate tariffs on a range of American industrial and agricultural products.
These include dried distillers' grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits and several other products, as per the PTI.
India has also indicated plans to purchase US goods worth around 500 billion US dollars over the next five years. These purchases could include energy products, aircraft and aircraft parts, precious metals, technology products and coking coal.
The talks come against the backdrop of two Section 301 investigations launched by the Office of the United States Trade Representative (USTR) in March.
The investigations involve concerns over industrial overcapacity and labour practices in global supply chains.
India has strongly rejected the allegations and argued that the investigations lack sufficient justification.
Officials are expected to discuss these issues as part of the broader trade relationship.
The United States remained India's second-largest trading partner during the 2025-26 financial year.
India's exports to the US increased slightly to 87.3 billion US dollars, while imports from the US rose to 52.9 billion US dollars, reported the PTI.
India's trade surplus with the US stood at 34.4 billion US dollars during the last financial year, compared with 40.89 billion US dollars in 2024-25.
The outcome of the current negotiations is expected to play a key role in shaping future economic and trade relations between the two countries.
(with PTI inputs)
