NEW DELHI: Indian trade negotiators, who head to Washington DC this week ahead of formal launch of talks, may explore an "early tranche" that covers a limited set of issues, even as New Delhi and Washington seek to close negotiations quickly, possibly ahead of the fall deadline.
The terms of reference or modalities for the proposed deal, running into 19 chapters, will include regulatory issues such as those related to digital tax, in addition to tariff cuts and non-tariff measures. The modalities have identified issues which are to be taken up and how the technical aspects of the negotiations, such as rules of origin or customs facilitation, would work. But firm offers will be made later.
In early March, US President Donald Trump and PM Narendra Modi agreed to launch talks for a bilateral trade deal, but since then, reciprocal tariffs have come into the picture. With Trump offering a 90-day pause on reciprocal tariffs, there may be an opportunity to harvest some of the low-hanging fruits that are mutually beneficial to both sides, sources indicated. Of course, it is contingent upon the American side being willing to engage in talks at a time when countries from across the globe are rushing to DC to see how they can avoid reciprocal tariffs.
Some clarity is also expected to emerge during US Vice-President J D Vance's visit to India, starting Monday, when he is scheduled to meet Modi.
The team led by India's chief negotiator Rajesh Agrawal will be in DC for three-day talks from April 23 to discuss the path forward as technical talks commence. "Both sides will discuss the level of ambition. The terms of reference will be further developed and discussed" an official said.
Sources said that services, which is a key focus for govt, is likely to be part of the second tranche. Trump has mainly focused on tariffs during his offensive against countries, including India, and wants duties slashed for products of interest to the US. In India's case, he and his commerce secretary Howard Lutnick have flagged areas such as automobiles, whiskey and farm products.
Also read: India, US push ahead on $500-billion trade pact target
The terms of reference or modalities for the proposed deal, running into 19 chapters, will include regulatory issues such as those related to digital tax, in addition to tariff cuts and non-tariff measures. The modalities have identified issues which are to be taken up and how the technical aspects of the negotiations, such as rules of origin or customs facilitation, would work. But firm offers will be made later.
In early March, US President Donald Trump and PM Narendra Modi agreed to launch talks for a bilateral trade deal, but since then, reciprocal tariffs have come into the picture. With Trump offering a 90-day pause on reciprocal tariffs, there may be an opportunity to harvest some of the low-hanging fruits that are mutually beneficial to both sides, sources indicated. Of course, it is contingent upon the American side being willing to engage in talks at a time when countries from across the globe are rushing to DC to see how they can avoid reciprocal tariffs.
Some clarity is also expected to emerge during US Vice-President J D Vance's visit to India, starting Monday, when he is scheduled to meet Modi.
The team led by India's chief negotiator Rajesh Agrawal will be in DC for three-day talks from April 23 to discuss the path forward as technical talks commence. "Both sides will discuss the level of ambition. The terms of reference will be further developed and discussed" an official said.
Sources said that services, which is a key focus for govt, is likely to be part of the second tranche. Trump has mainly focused on tariffs during his offensive against countries, including India, and wants duties slashed for products of interest to the US. In India's case, he and his commerce secretary Howard Lutnick have flagged areas such as automobiles, whiskey and farm products.
Also read: India, US push ahead on $500-billion trade pact target
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