India, US to begin key trade talks in Washington today as BTA draft framework to be revisIted

India and the United States are set to begin a crucial three-day round of negotiations from April 20 to 22 in Washington, aimed at advancing the first phase of their proposed Bilateral Trade Agreement (BTA) amid shifting global tariff dynamics. The negotiations are being held during a period of acute global energy instability in early 2026, driven primarily by a conflict in West Asia that has significantly impacted global energy supply chains.

The negotiations follow significant developments in US trade policy. After the US Supreme Court struck down reciprocal tariffs imposed under President Donald Trump’s 1977 emergency powers law, the Trump administration introduced a uniform 10% tariff on all countries for 150 days starting February 24.

A 12-member Indian delegation, led by chief negotiator Darpan Jain, additional secretary in the Department of Commerce, will take part in the talks. The team includes officials from key ministries such as commerce, customs, and external affairs, underscoring the strategic importance of the discussions.

This marks the first in-person engagement between the two sides since October 2025. The talks come at a time when major shifts in US tariff policy have prompted both countries to reassess the draft framework released on February 7, 2026.

Earlier tariff measures, ranging from 26% duties on Indian exports to proposed cuts and revisions—had already undergone multiple changes over the past year, creating uncertainty in the trade framework.

The evolving tariff environment requires that the agreement will have to be recalibrated and redrafted.

The February draft had proposed major tariff adjustments, including US plans to reduce duties on Indian goods from as high as 50% to around 18%, along with removal of certain sector-specific tariffs.

India, meanwhile, had proposed reducing tariffs on US industrial goods and select agricultural products such as dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, wine, and spirits. It had also indicated plans to import goods worth $500 billion over five years, including energy, aircraft parts, precious metals, and technology products.

President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian Federation oil. Given India’s willingness to align with the United States to confront systemic imbalances in the bilateral trade relationship and shared national security challenges, the United States will lower the Reciprocal Tariff on India from 25% to 18%, as per the US factsheet.

The discussions are also expected to address ongoing US Trade Representative (USTR) investigations under Section 301, which India has rejected, calling for their withdrawal.

Commerce Minister Piyush Goyal has previously described the India–US relationship as “robust and deep,” while emphasizing India’s expectation of preferential market access compared to other trading partners.

Meanwhile, India’s exports to the US rose modestly to $87.3 billion in the last fiscal year, while imports increased nearly 16% to $52.9 billion, narrowing India’s trade surplus to $34.4 billion.