India, US working on removing trade barriers: MoS

Republic of india and the US testament focalise on increasing securities industry get at for each other, reducing tariff and non-tariff barriers, and enhancing supply chain integration, minister of state for commerce Jitin Prasada told the Lok Sabha on Tuesday after an Indian ministerial delegation concluded the week-long America visit, as the two sides work on a Bilateral Trade Agreement (BTA) which they hope to conclude by the fall of 2025.In a written reply to specific questions related to the impact of tariffs imposed by the US on India’s exports, Prasada said: “As on date, reciprocal tariffs have not been applied by US on India.” His comments came days after a delegation led by commerce minister Piyush Goyal concluded its US visit and even as New Delhi is holding interministerial discussions to lower exceptionally high tariffs on items such as automobiles (motorbikes and cars) for mutual gains, two officials said.The proposed bilateral trade talks may nudge India to lower tariffs but also benefit labour-intensive sectors in India such as engineering goods, gems and jewellery, marine products, textiles, garments and carpet manufacturing, they said requesting anonymity. According to a commerce ministry data, India exported engineering goods worth $17.62 billion in FY 2023-24, electronic goods ($10 billion), gems and jewellery ($9.9 billion), petroleum products ($5.83 billion), textiles ($4.7 billion), and marine products ($2.5 billion).Prime minister Narendra Modi and President Donald Trump on February 13 agreed to negotiate the first tranche of a “mutually beneficial, multi-sector” BTA by fall of 2025 and set a “bold new goal” for bilateral trade – “Mission 500” – aiming to more than double total bilateral trade to $500 billion by 2030. In his written reply, Prasada said the US issued a “Memorandum on Reciprocal Trade and Tariffs” on February 13, 2025, wherein its secretary of commerce and United States Trade Representative (USTR) are directed to take necessary actions to investigate harm to the US from any non-reciprocal trade arrangements adopted by trading partners.According to him, after investigation, the US commerce secretary and USTR would provide a report with “detailed proposed remedies” for each trading partner. Based on the report, the US would take action against relevant trading partners. “The Government of India continues to engage with the Government of United States to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner,” Prasada added.A fact sheet, released by the Trump administration on February 13, ordered American authorities to prepare a “comprehensive plan” for restoring fairness in US trade relationships and countering non-reciprocal trading arrangements. “The US average applied Most Favored Nation (MFN) tariff on agricultural goods is 5%. But India’s average applied MFN tariff is 39%. India also charges a 100% tariff on U.S. Motorcycles, while we only charge a 2.4% tariff on Indian motorcycles,” it said.One of the Indian officials mentioned above said, “India is keen on a balanced trade relationship with the US and both partners are engaged to resolve both tariff and non-tariff issues.”India-US bilateral trade in goods and services was little over $190 billion in 2023 -- $123.89 billion of merchandise trade and $66.19 billion of services trade. India’s goods exports to the US that year was $83.77 billion, it imported goods worth $40.12 billion, leading to $43.65 billion trade deficit for the US.

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