India Focus on US

  • GS-2: International Relations (India-U.S. Trade Relations, WTO & Tariff Issues)
  • GS-3: Economy (Trade Barriers, Intellectual Property Rights)

Key Highlights

India-U.S. Bilateral Trade Talks Progress:

  • Commerce Minister Piyush Goyal met U.S. officials in Washington to advance a bilateral trade agreement (BTA).
  • India aims to reduce tariffs, enhance market access, and deepen supply chain integration through the BTA.
  • The first phase of the agreement, including tariff waivers, is expected by September 2025.

U.S. Reciprocal Tariffs & India’s Response:

  • Donald Trump announced higher tariffs on India from April 2, citing retaliation for India’s taxation on U.S. goods.
  • India sidestepped direct comments on the impact of reciprocal tariffs, focusing instead on trade negotiations.
  • The U.S. Trade Representative placed India on the “Priority Watch List” for high tariffs and intellectual property rights concerns.

Extradition of Tahawwur Rana:

  • India awaits U.S. legal proceedings before the extradition of 26/11 accused Tahawwur Rana.
  • The U.S. Supreme Court rejected his emergency appeal, but Rana is seeking another stay on extradition.

Analysis & Way Forward

  • Negotiating tariff waivers while avoiding a full-fledged trade war is in India’s best interest.
  • Diversifying trade partnerships can mitigate risks from U.S. tariff impositions.
  • India must strengthen its IPR framework to avoid future trade disputes with the U.S.

Mains Mock Question:

“Discuss the significance of India-U.S. trade relations in the context of rising protectionism and tariff barriers. Suggest measures to strengthen bilateral trade.”

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