India's preparations for trade agreement intense, demand relaxation from America in technical sector

India has stepped up preparations for the current negotiations for a bilateral trade deal (BTA) with America. India can seek relaxation from America in the technology sector at par with significant US allies such as Australia, Britain, and Japan under export control as well as under a suggested bilateral trade agreement (BTA), it is said. India can request relaxation for areas such as telecom equipment, biotech, AI (artificial intelligence), pharmaceuticals, quantum computing, as well as semiconductors, according to sources.

Amar Ujala Sources say that under the agreement, India is also demanding duty concessions for sectors like textiles, gems and jewellery, leather goods, apparel, plastics, chemicals, shrimp, oilseeds, chemicals, grapes and bananas. While the US wants duty concessions in sectors such as industrial goods, automobiles (electric vehicles), wine, petrochemical products, dairy, agricultural goods such as apples and tree nuts.

The US has eased export controls to strengthen technology partnerships with close allies such as Australia, the UK and Japan, according to think tank GTRI. These changes have been made to ease cooperation in key areas. The US has simplified rules for sharing defense and dual-use technologies with Australia and the UK. From September 1, 2024, about 80 percent of defense-related exports to these countries no longer require individual licenses under revised US arms rules.

GTRI founder Ajay Srivastava said the US is keen to strengthen technological ties with India. It may fall short of offering full parity. US officials may point to ongoing concerns about India's export controls, intellectual property protection, cybersecurity standards and military ties with Russia. The US may suggest mechanisms such as the Trusted Partner Program, project-specific licenses or extended licensing exceptions for select Indian entities instead of blanket exemptions.

The US remained India's largest trading partner for the fourth consecutive year in 2024-25. Its bilateral trade stood at US$ 131.84 billion. The US accounts for about 18 per cent of India's total merchandise exports, 6.22 per cent of imports and 10.73 per cent of the country's total merchandise trade. India's trade surplus in terms of goods with the US was $41.18 billion in 2024-25. It was $35.32 billion in 2023-24, $27.7 billion in 2022-23, $32.85 billion in 2021-22 and $22.73 billion in 2020-21. The US has expressed concern over this growing trade deficit.