India-US Trade Deal: Darpan Jain-led team reaches US to finalise legal terms

India-US Trade Deal: Commerce Secretary Rajesh Agarwal said on Monday that in-person discussions between Indian and American negotiators is the next logical step in finalising the India-US trade deal. "This is a logical follow-up. The negotiating teams are meeting in person and will work towards finalising the legal agreement," said the official.

His remaks came after a high-level delegation, led by Darpan Jain, reached in Washington, the USA, on Monday to engage in talks with American negotiators spanning new US tariff rules, a US Supreme Court ruling, and an ongoing Section 301 probe against several countries including India. Jain, Additional Secretary, Department of Commerce, will be the chief negotiator representing India in the talks. The team is expected to participate in rigurous discussions with American negotiators until Wednesday, April 22, when their official visit ends.

This marks the first in-person discussions between both sides in 3-4 months. Until now, negotiators were only discussing various aspects of the deal through virtual meetings.

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The talks will cover the first phase of the India-US Bilateral Trade Agreement (BTA), say sources.

The Donald Trump 2.0 administration announced the trade deal in February, after the US president and PM Narendra Modi engaged in telephonic conversation for an interim trade agreement.

Under the proposed deal, the US offered significant tariff reductions on Indian goods entering the world's largest economy.

What will be the outcome of these negotiations?

The discussions may lead to breakthrough in the final contours of the deal to prepare a roadmap for a full agreement, giving a legal shape to the pact.

The development assumes significance as both sides are yet to resolve a range of pending issues.

What is the US-India trade deal about?

India and the US announced a framework for an interim trade agreement on February 2. The deal is pending full legal finalisation.

On February 7, the US removed an additional 25 per cent levy on Indian goods, followed by the removal of reciprocal tariffs from February 20.

However, on February 24, the US imposed a sweeping 10 per cent tariff on all countries.

Meanwhile, the US has initiated two investigations against some of its trade partners, including India. This probe covers aspects like excess capacity and forced labour.

Both sides will sit together and discuss how these issues need to be structured and addressed, said Agrawal, adding: "India and the US will work together to finalise timelines and next steps as part of the ongoing engagement."