India Eyes Increased U.S. Imports to Expedite Trade Agreement

India is considering boosting imports from the United States as a strategic move to accelerate negotiations for a bilateral trade agreement. The Indian government has asked exporters and importers to identify sectors where U.S. imports could be increased, aiming to reduce its trade surplus with the U.S., which currently stands at over $40 billion. This initiative is seen as a goodwill gesture ahead of trade talks scheduled for April 23 in Washington, where India’s chief trade negotiator will engage in discussions with his American counterpart.

Key sectors under review for increased imports include crude oil, LNG, plastics, and gold. Additionally, a new U.S. regulation could make American imports more attractive by applying tariffs only to non-U.S. content in imported products, potentially benefiting industries like polymers and gems and jewellery. The negotiations come at a crucial time, as the U.S. has paused new tariff implementations until July 9, allowing both nations to reach a consensus.

The proposed Bilateral Trade Agreement (BTA) is expected to cover multiple aspects, including goods, services, non-tariff barriers, customs facilitation, and dispute resolution. With India’s global trade deficit estimated at $282 billion, officials believe rebalancing import sources in favor of the U.S. will not be difficult.