India may seek access to critical technologies, trade concessions in talks with US

An Indian delegation led by chief negotiator Rajesh Agarwal recently concluded three days of preliminary discussions in Washington to address differences before formal negotiations begin.

In upcoming bilateral trade agreement (BTA) negotiations, India will likely ask that the United States ease export controls and provide access to critical technologies at levels comparable to key American allies like Australia, the United Kingdom, and Japan, according to sources familiar with the discussions.

The technology access request would focus on strategic sectors including telecom equipment, biotechnology, artificial intelligence, pharmaceuticals, quantum computing, and semiconductors. Officials told PTI that the enhanced access to cutting-edge technologies would significantly strengthen India's innovation capabilities and technological infrastructure, further accelerating the country's economic growth trajectory.

Beyond technology access, in its proposed pact with America, India is reportedly seeking tariff reductions for its labour-intensive export sectors, including textiles, gems and jewelry, leather goods, garments, plastics, chemicals, agricultural products like grapes and bananas, and seafood such as shrimp.

Meanwhile, the United States wants to secure duty concessions for industrial goods, automobiles (particularly electric vehicles - EVs), wines, petrochemicals, dairy, and agricultural items including apples and tree nuts.

According to analysis from the Global Trade Research Initiative (GTRI), the US has comparatively eased export controls to strengthen technology partnerships with close allies. For example, under the AUKUS security pact, approximately 80 percent of defense-related exports to Australia and the UK no longer require individual licenses as of September 2024.

Similarly, while Washington introduced new global controls on quantum computing and semiconductor manufacturing exports last September, trusted partners including G7 nations received substantial exemptions.

Who is leading the India delegation?

An Indian delegation led by chief negotiator Rajesh Agarwal recently concluded three days of preliminary discussions in Washington to address differences before formal negotiations begin.

Both countries have finalized the terms of reference for the proposed agreement, encompassing approximately 19 chapters covering tariffs, goods, services, rules of origin, non-tariff barriers, and customs facilitation.

India-US trade

The United States remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. The US accounts for approximately 18% of India's total goods exports and 10.73% of the country's total merchandise trade.

India maintained a trade surplus with America of $41.18 billion in goods during 2024-25, an increase from previous years. This widening trade deficit has been a point of contention raised by US officials in discussions.