{"id":55027,"date":"2025-04-11T11:00:00","date_gmt":"2025-04-11T05:30:00","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=55027"},"modified":"2025-04-14T12:41:13","modified_gmt":"2025-04-14T07:11:13","slug":"digital-trade-to-dairy-india-us-focus-areas-in-new-deal","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/digital-trade-to-dairy-india-us-focus-areas-in-new-deal\/","title":{"rendered":"Digital Trade to Dairy: India-US Focus Areas in New Deal"},"content":{"rendered":"
<\/div>\n

<\/p>\n\n\n\n

With geopolitical tensions and global<\/a> trade dynamics shifting rapidly, India and the United States are working against the clock to finalize a partial bilateral trade agreement. The goal? To cement progress before the 90-day pause on reciprocal tariffs\u2014announced by former US President Donald Trump and recently revived under ongoing negotiations\u2014expires.<\/p>\n\n\n\n

According to senior government officials, the trade pact aims to address three key focus areas: tariff reductions, digital trade facilitation, and expanded market access<\/strong>. While not as comprehensive as a full free trade agreement (FTA), this partial deal could lay the groundwork for future economic collaboration, especially as India navigates a multipolar global order and the US counters China\u2019s influence in Asia.<\/p>\n\n\n\n

What Is a Partial Bilateral Trade Deal?<\/strong><\/h2>\n\n\n\n

A partial bilateral trade agreement<\/strong> is a focused pact between countries that covers specific sectors or issues, unlike a full FTA, which encompasses a broader spectrum of trade and investment rules. This deal is often pursued when time is limited or when a full FTA is politically or administratively infeasible.<\/p>\n\n\n\n

In this case, the 90-day pause is a strategic window to resolve trade frictions that have plagued Indo-US relations over the past few years. The pause was initiated in light of Trump-era tariffs and retaliations\u2014particularly those under Section 232 (steel and aluminium) and Section 301 (digital services tax<\/a> and e-commerce).  Source:<\/em> <\/em>Business Standard<\/em><\/a> <\/em><\/p>\n\n\n\n

Why Now? The Strategic Importance of the 90-Day Window<\/strong><\/h2>\n\n\n\n

This narrow window comes at a critical time. According to Statista, US-India bilateral trade in goods was valued at $131 billion in 2023<\/strong>, making the US India\u2019s largest trading partner. However, trade imbalances and tariff-related tensions have been persistent issues.  <\/p>\n\n\n\n

Year<\/strong><\/td>US-India Trade Volume (in $B)<\/strong><\/td><\/tr>
2019<\/td>92.1<\/td><\/tr>
2021<\/td>112.6<\/td><\/tr>
2023<\/td>131<\/td><\/tr><\/tbody><\/table>
Data Source: Statista<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

The Three Fronts India Will Focus On<\/strong><\/h2>\n\n\n\n

1. Tariff Reductions on Key Sectors<\/h3>\n\n\n\n

India is pushing for tariff concessions, particularly on exports such as textiles, pharmaceuticals, leather, and engineering goods. The US, in turn, is interested in reducing duties on high-end tech products, renewable energy<\/a> components, and agricultural exports like almonds and apples.<\/p>\n\n\n\n

For example:<\/p>\n\n\n\n