US-India trade talks underway: Farm goods, ecommerce and data centre among 19 key sectors in focus
Financial Express | 25 April 2025
US-India trade talks underway: Farm goods, ecommerce and data centre among 19 key sectors in focus
Amid the ongoing tariff wars, India and the United States are discussing trade agreements. According to Bloomberg, 19 categories of products are the focus of the ongoing negotiations. Data storage, Ecommerce, farm products and critical minerals are the key sectors in the discussion.
The United States Vice President JD Vance’s recent visit to India laid the groundwork for the trade deal between India and the US. Both parties have agreed on the terms of reference for the bilateral trade. Along with the goods, services are also a significant part of the trade deal.
Earlier, the United States President Donald Trump levied a 26 percent reciprocal tariff on India, which is currently on hold. The US is among India’s biggest trade partners and the biggest importer of India’s service industry. India was the first country to initiate a trade deal with the US.
Agri products top focus
Agricultural products are among the top priorities for the US, as the country is looking for a market for its agricultural products. It has been trying to increase the exports of farm products in India. However, tariffs on these products from India have been a big barrier. India’s farmers have been against importing agricultural goods as it could impact their earnings.
Genetically modified soybeans and corn, which are among the biggest farm products of the US, are strongly restricted in India. India is also a big producer of both crops.
Level playing field for US companies
The mammoth e-commerce companies from US, like Amazon and Walmart, have been pushing for a larger market penetration in the Indian market. However, the report indicates that big Indian retailers like Reliance Retail pose significant challenges. The US companies have demanded a level playing field against the Indian companies. Additionally, the Indian government has been trying to shield the large number of small local kirana stores against the big corporations.
IT companies from United States like Google, Meta, and Microsoft are concerned about India’s data centre policy. The policy localisation of the data centre by the Indian government is also part of the ongoing trade deal discussion.
