India and US Advance Trade Talks with Focus on E-Commerce, Agriculture, and Data Storage

Image Source : The Economic Times

India and the United States have finalized a framework to begin formal negotiations for a comprehensive trade agreement covering 19 key sectors, including agriculture, e-commerce, data storage, and critical minerals. The discussions aim to strengthen bilateral trade relations while addressing long-standing concerns over market access and regulatory policies.

Key Highlights:
- The agreement seeks to enhance trade in goods and services, with a focus on reducing barriers for US farm exports and India's data localization rules.
- Agricultural access remains a contentious issue, with the US pushing for lower restrictions on genetically modified crops such as soybean and corn, which face resistance from Indian farmers and regulators.
- Global tech giants, including Amazon, Walmart, Google, and Meta, are advocating for reforms in India's e-commerce and digital regulations to facilitate greater market penetration.
- The negotiations follow US Vice President JD Vance’s meeting with Prime Minister Narendra Modi in New Delhi on April 21, reinforcing commitments to finalize the first phase of the trade deal by fall 2025.
- The US has temporarily paused the 26 percent reciprocal tariff imposed on Indian goods, with a final decision pending the outcome of negotiations.
- Both nations aim to boost bilateral trade to $500 billion by 2030, up from the current $127.6 billion.

Sources: Bloomberg, Economic Times, Deccan Herald, Financial Express, India Today News