New Delhi: India's exports to the US are rising, and it can increase imports of products like shale gas, LNG, and crude oil from America to diversify its import basket, as prices of these items are lower in the US, an official said. Teams of both countries will start next round of talks this week here on the proposed bilateral trade agreement.
Though India is looking for a balanced and a mutually beneficial trade agreement with the US, "what we get as compared to other countries, will determine what we ultimately finalise in the deal," the official said.
Asked if some kind of interim trade deal can be agreed upon before July 9, the official said a lot of uncertainties are there at present because of developments like the Trump administration's plan to further increase tariffs on steel and a stay on a court order against the US authorities' decisions on tariffs. But within the constraints of uncertainties, India has to find pathways which are good for the country, the official said.
"Exports are increasing... there are several things we can buy from the US... For example shale gas, LNG, crude oil. The more diversified our sources, the greater the benefit for us. Prices are also low in the US," the official, who did not wish to be named, said.
The official added that the US is a major trading partner of India, with a significant trade surplus in India's favour. Moreover, a large number of jobs are linked to exports to the US.
India has already reserved its right to impose retaliatory tariffs against US duties on steel and aluminium. It has also sought consultations under the WTO norms on US tariffs on auto components. Asked if India is considering taking similar measures in more products, the official said India will protect its interests.
"We will see what is good for India... accordingly we will take decisions," the official said, adding, "Today lot of uncertainties are there... because of that court order... we will discuss how to address these issues... lot of uncertainties are there".
In February, US President Donald J Trump and Prime Minister of India Narendra Modi announced plans to negotiate the first tranche or phase of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall (September-October) of 2025. It is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current level of USD 191 billion.
The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade.