US to push for major policy shifts in India under proposed trade deal: Think tank GTRI

The United States is expected to press for sweeping policy changes in India that would benefit American exporters and firms under the proposed Bilateral Trade Agreement (BTA), think tank Global Trade Research Initiative (GTRI) said on Sunday.

According to GTRI, US demands in the agricultural sector include scaling back India's minimum support price (MSP) schemes for crops like rice and wheat, easing import restrictions on genetically modified (GM) products, and reducing farm tariffs.

The think tank noted that India’s certification requirements for GM-free feed and facility registration protocols effectively block US dairy imports. India bars imports from animals fed with animal-derived feed owing to religious sensitivities.

“India considers this policy non-negotiable,” GTRI Founder Ajay Srivastava said.

The US is also expected to push for liberalising rules for American retail giants such as Amazon and Walmart, which currently face restrictions on foreign-owned inventory-based e-commerce models.

The US has criticised India’s licensing norms for remanufactured and second-hand capital goods, calling them costly and slow. Washington has flagged India’s requirements for technical certification, quantity restrictions, and a minimum residual life of five years for such imports.

“India maintains that these distinctions are crucial to prevent dumping of outdated technology and safeguard domestic manufacturing,” Srivastava said, adding that Washington is expected to continue pressing for reforms in tariffs, standards, digital trade norms, and services access as talks progress.

The Ministry of Commerce and Industry on Tuesday said India and the US made “positive progress” during in-person discussions on the proposed BTA held in Washington, D.C., from April 23 to 25.

An Indian delegation led by Additional Secretary Rajesh Agrawal held talks with officials from the Office of the US Trade Representative (USTR), building on earlier discussions held virtually and in New Delhi in March.

The ministry said the two sides deliberated on a wide range of tariff and non-tariff issues and discussed a roadmap to conclude the first tranche of the multi-sector agreement by Fall 2025.

The talks are in line with the commitment made during Prime Minister Narendra Modi’s visit to Washington in February, where both nations agreed to double bilateral trade to USD 500 billion by 2030.

United States President Donald Trump on Tuesday said that a trade deal between the US and India could be struck soon, saying that tariff negotiations with New Delhi are "coming along great".

Speaking to reporters outside the White House, Trump said, "I think we will have a deal with India."

US Treasury Secretary Scott Bessent also hinted at progress, stating that India could become the first country to conclude a bilateral trade pact with the US under President Trump’s reciprocal tariff strategy.