Trade Talks: India Heads to US for Negotiations
Indian negotiators are gearing up to travel to Washington, D.C. for important trade discussions with the United States, indicating a potential thaw in the previously strained relations. This development follows a significant meeting over the weekend between newly appointed U.S. Ambassador-designate Sergio Gor and Indian leaders, including Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar.
One of the central issues on the agenda is India's willingness to increase energy imports from the U.S. This is aimed at addressing concerns from Washington regarding India's imports of Russian oil. Both nations have acknowledged that resolving the Russian oil dilemma is crucial for progressing toward a Bilateral Trade Agreement (BTA).
The recent easing of tensions can be traced back to a phone call between U.S. President Donald Trump and Prime Minister Modi, where they discussed positive progress in trade negotiations. With potential discussions upcoming on the sidelines of the ASEAN and East Asia Leaders’ Summit in Malaysia later this month, both sides are contemplating the next steps.
In the backdrop of these talks, trade relations between the U.S. and China appear to be deteriorating, with Trump threatening tariffs on Chinese imports in response to new restrictions announced by China on critical minerals. This context may influence the urgency and nature of the trade discussions between India and the U.S.
The ongoing trade talks are particularly significant for Indian small businesses, as the Trump administration’s tariffs on Indian goods have started to have a detrimental effect. A recent survey by the Confederation of Indian Textile Industry (CITI) revealed that one-third of respondents reported a drastic decline in turnover, with many facing inventory build-up due to canceled orders.
Indian manufacturers are also feeling the pinch, facing extended credit cycles across the supply chain, which has led to increased liquidity strain. The U.S. remains a vital market for India’s textile and apparel exports, making these negotiations critical for economic stability.
Despite the Indian government urging exporters to maintain their market presence in the U.S., concerns are rising as the promised relief package for affected sectors remains unresolved. The Gem & Jewellery Export Promotion Council (GJEPC) has called for immediate action to support the sector, highlighting the need for measures like interest moratoriums on loans and easing export obligations.
As the discussions unfold, the outcome could shape the future of India-U.S. trade relations and impact countless businesses back home.
