India and the US are preparing for the second round of face-to-face conversations about the agreement in Washington, with the Indian side led by the most important negotiator Rajesh Agarwal.
“This issue is part of India's agenda for the conversations,” said one of the two people mentioned above.
These tasks, in fact since 12 March, are part of a wider 'mutual rate' walk by the US. These also include a rate of 25% on cars that are in force from 3 April.
“India sees the BTA as an important platform to resolve such commercial irritating substances and to ensure long -term predictability in bilateral trade,” the second person said.
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“According to the protocols of the trade interviews, all rates – compared to the product – are usually part of the BTA interviews. India will also insist on tasks on steel and aluminum within the specifications of these discussions,” said this person.
This presupposes the meaning because India and the US are important trading partners, with bilateral trade increasing from $ 51.6 billion in the tax year 2021 (FY21) to $ 86.51 billion in FY25. The US is the largest trading partner in India, while India is the seventh largest in the US.
Bilateral trade grew by 11.6% in FY25, with an increase of $ 77.52 billion in FY24 to $ 86.51 billion, according to data from the Ministry of Commerce. However, imports from the US increased by a modest 7.42%, from $ 42.20 billion to $ 45.33 billion, during the tax year that ended on 31 March. As a result, India registered a trade surplus of $ 41.18 billion at the US in FY25, an increase of $ 35.32 billion, an increase of 16.6%.
Controversial problems
The Indian team will have conversations with American negotiators from 23-25 April with a focus on solving important outstanding issues such as digital tax regulations, tariff reductions and non-tariff biners.
New Delhi has also expressed concern about an American demand for market access for its dairy products, and says that food practices in the US differ considerably from those in India, as reported by Mint On Monday.
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In the US, cattle are fed with 'stall-based' food, including animal-based protein sources-a practice that expressed concern in India.
Mailing Query's E -Mail to spokesmen of the Ministries of Trade, External Affairs and the American Embassy remained unanswered until time.
“The government should move forward not just to eliminate the reciprocal tariffs, but also to seek better market access in other sectors—particularly textiles, apparel, and other labour-intensive industries. At the same time, India will have to remain alert to protect the interests of its farmers,” said Abhijit Das, an International Trade Expert and Former Head of the Center for WTO Studies, New Delhi.
However, a market leader said that the extra 25% duty – at the top of the existing duty – has an impact on steel on Indian production, even because many shipments are already on the road.
“The steel industry has proposed to adopt a zero-for-zero rate on steel and aluminum that would create a level playing field. Indian steel makers are open to such a tariff structure,” said Pankaj Chhada, chairman of the Engineering Export Promotion Council.
Trade Research Body Global Trade Research Initiative (GTRI) is of the opinion that the impact of the 25% rates of the Trump administration on iron, steel and aluminum products on India is probably limited.
A GTRI report noted that the American rates on the Indian automotive sector would also be minimal, and some segments could even see opportunities.
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Gtri founder Ajay Srivastava warned that if India decides the rates for the import of passenger cars to calm the US, can be counterproductive. He mentioned Australia's experience in the late 1980s, when the production industry of the Autofabriol collapsed after the country had reduced auto import rates from 45% to 5%.
