India to start sector-specific trade talks with US

India will start sector-specific trade discussions with the US on Monday, according to a New Delhi official, with the South Asian nation looking to nail down key details within six weeks.

Virtual talks will begin this week, a senior official aware of the developments told Bloomberg News. By end of May, both sides aim to have clarity on the sectors where they have room for concessions, the official added, asking not to be identified in line with protocol. The development was first reported by local Indian media on Monday.

Trade Deal a Priority

During Prime Minister Narendra Modi’s visit to the White House in February, India and the US had said they plan to conclude the first tranche of the trade deal by fall. Despite that, Donald Trump hit India with 26% reciprocal tariffs on April 2, before announcing a 90-day reprieve for most nations.

According to the Indian official, New Delhi is not overtly worried about the reciprocal tariffs, and said that sealing a trade deal with the South Asian nation is a priority for Washington as well. Both sides are working on setting realistic targets, the official added.

The commerce ministry in India did not respond to a request for comment.

Last week, India had said it can reach a provisional trade agreement with the Trump administration in 90 days if the offers are mutually beneficial.

New Delhi has already overhauled its tariff regime over the last few weeks, reducing import duties on some 8,500 industrial items, including on prominent American goods like bourbon whiskey and high-end motorcycles made by Harley-Davidson Inc., satisfying a longtime grievance of the US president. Officials are also considering US demands to reduce import tariffs on American farm products, Bloomberg News has reported, although agriculture is a politically-sensitive issue in India.

Analysts have said India should be cautious when it comes to the farm sector. “Many of Washington’s demands — such as weakening India’s minimum price support system for farmers, allowing genetically modified food imports, lowering agricultural tariffs, changing patent laws to extend drug monopolies, and letting American e-commerce giants sell directly to consumers — pose major risks,” said Ajay Srivastava, former trade official and founder of the Global Trade Research Initiative, in a note last week.