To avoid the risk of U.S. tariffs and strengthen trade ties between New Delhi and Washington, India's Ministry of External Affairs has announced efforts to sign a bilateral trade agreement. In this regard, Indian Minister of Commerce and Industry Piyush Goyal has traveled to the U.S. for discussions.

Starting in April, India is among the countries facing U.S. retaliatory tariffs, causing concern among Indian exporters. Many fear that these high tariffs could cripple their businesses, with analysts predicting potential annual trade losses of around $7 billion. To mitigate these economic risks, India is actively seeking a trade agreement with Washington.

During his visit, Goyal met with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to discuss the proposed deal. While details of the discussions have not been disclosed, reports suggest that India aims to reduce the impact of tariffs set to take effect on April 2.

Randhir Jaiswal, spokesperson for India's Ministry of External Affairs, stated that the goal of the trade agreement is to strengthen and expand bilateral trade in goods and services by enhancing market access, reducing tariff and non-tariff barriers, and improving supply chain coordination between the two nations.

Meanwhile, U.S. Commerce Secretary Howard Lutnick told Indian media outlet India Today that for a large-scale trade deal to materialize, India must lower tariffs on American goods and increase defense spending.

In response, India has already reduced tariffs on several U.S. products. The duty on high-end motorcycles has been lowered from 50% to 30%, while the tariff on bourbon whiskey has been cut from 150% to 100%. Additionally, India has pledged to review other tariff structures and increase its procurement of U.S.