Need to accelerate India, US trade pact talks: Experts

New Delhi: India should accelerate discussions for the proposed bilateral trade agreement with the US as the deal could help secure preferential market access, improve investor protections, and encourage technology partnerships between the two countries, experts said on Monday. They also said that the pact is critical for India to address long-standing non-tariff barriers in sectors like chemicals, telecom equipment, and medical devices, which were explicitly flagged in the US tariff statement.

Mutual Recognition Agreements (MRAs) for standards and testing protocols could be a strategic step forward in reducing regulatory friction and improving market access in these sensitive sectors, they added.

Even though the new US tariffs might put short-term pressure on India’s key export sectors, the broader strategic landscape offers significant long-term advantages, Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas & Co, said.

He said that India can leverage its differential tariff exposure, policy incentives, sectoral strengths, and diplomatic engagement to not only safeguard current trade volumes but also to position itself as a core player in the future US-centric global supply chain architecture.

Strategic action in investment promotion, trade negotiation, and regulatory alignment will be key to turning this challenge into a transformative growth opportunity, he added.

“From a policy standpoint, these developments open up a timely opportunity for India to initiate or accelerate discussions on a bilateral investment treaty or a limited-scope free trade agreement with the US,” Pandey said. He added that the imposition of an additional 26 per cent import duty by the US has considerable implications for Indian exports, especially in industries such as gems and jewellery, electrical and telecom equipment, electronics, and textiles and clothing, which collectively accounted for about USD 37 billion in exports to the US in 2024.