India-US trade talks begin today: Tariffs, AI, pharma on cards, what to expect

India and US are all set to begin trade talks in Delhi from 1 June to 4 June, as both countries look to finalise the interim trade agreement and take forward negotiations on aspects such as market access, non-tariff measures, and customs facilitation.

Last week, US Ambassador to India Sergio Gor said that the bilateral negotiations had reached their final stretch.

“Just last week, India had sent a team to Washington DC to finalise the last 1% of that trade deal. Next week we will welcome a US delegation here to continue those talks. We fully expect that the trade deal will be signed over the next few weeks and months,” news agency PTI cited Gor as saying.

The bilateral trade between the two countries has grown from $20 billion to $220 over the past two decades.

Meanwhile, Union Commerce Minister Piyush Goyal also visited the US last week with the aim of expanding cooperation in sectors such as financial services, healthcare, manufacturing, artificial intelligence and digital payments.

The US team will be led by its chief negotiator Brendan Lynch; while India's chief negotiator is Darpan Jain, who is an additional secretary in the Department of Commerce, The Indian Express reported.

What can be expected:

"Today, the US is one of India's largest trading partners, and India is among the top trading partners of the US. Importantly, this growth is increasingly driven by innovation, investment and high value sectors, from digital trade and advanced manufacturing to energy and emerging technologies," Gor said during his Delhi visit last week.

He added that India's growing economy and significant infrastructure needs align well with American expertise in energy, aviation, R&D, advanced manufacturing and digital infrastructure.

India and the US last week firmed up a framework for cooperation in the critical minerals sector, a move that came amid growing concerns over China's export controls on rare earth elements.

The envoy also mentioned India-US cooperation in areas of pharmaceuticals.

"On pharmaceuticals, we import close to 40% of our generics from India. There is a reason the United States does that: it is because we trust India. These are critical life-saving ingredients that are needed in the United States," Gor said.

India is also set to join a network of trusted ecosystems and resilient supply chains in areas such as artificial intelligence, semiconductors and quantum computing.

At the same time, Goyal during his US visit emphasised that "investor confidence, business stability, and a predictable regulatory environment remain top priorities for the Indian government."