India seeks equal tech-access as US allies in trade talks
27 Apr 2025

In the upcoming bilateral trade agreement (BTA) negotiations, India is likely to seek equal access to critical technologies from the US government.

This would be on par with other key American allies like Australia, Japan, and the UK.

The sectors of interest include telecom equipment, biotechnology, artificial intelligence (AI), pharmaceuticals, quantum computing, and semiconductors.

India seeks duty concessions in labor-intensive sectors
Trade concessions

India is also seeking duty concessions for labor-intensive sectors like textiles, gems and jewelry, leather goods, garments, plastics, chemicals, shrimp oil seeds, as well as grapes and bananas.

Meanwhile, the US is seeking duty concessions in sectors such as certain industrial goods, electric vehicles (EVs), wines, petrochemical products, dairy, and agricultural items like apples and tree nuts.

US has eased export controls to strengthen tech partnerships
Tech partnerships

The US has relaxed export controls to bolster technology partnerships with close allies such as Australia, the UK, and Japan.

Under the AUKUS security pact, the US has relaxed rules for sharing defense and dual-use technologies with Australia and the UK.

Starting September 1, 2024, around 80% of defense-related exports to these countries no longer require individual licenses under revised US arms regulations.

India's request for equal tech access in trade talks
Tech access

According to Ajay Srivastava, founder of think tank GTRI, while Washington is keen on strengthening tech ties with India under the Quad framework, it may not offer full parity.

"American officials could point to ongoing concerns about India's export controls, intellectual property protections, cybersecurity standards, and military relationships with Russia," he said.

"Rather than blanket exemptions, Washington may suggest mechanisms such as trusted partner programs, project-specific licenses, or expanded licensing exceptions for select Indian entities."

India and US finalize terms for proposed agreement
Agreement finalization

India and the US have also finalized the terms of reference (ToRs) for the proposed agreement.

These include some 19 chapters covering tariffs, goods/services rules of origin, non-tariff barriers, as well as customs facilitation.

An Indian official team had visited Washington to resolve differences on certain issues before formally launching negotiations for the pact during a 90-day tariff pause window.

US remains India's largest trading partner
Relationship

The US has been India's largest trading partner for the past four years, with a bilateral trade of $131.84 billion in 2024-25.

The US contributes approximately 18% of India's overall goods exports, 6.22% in imports, and 10.73% in the country's total merchandise trade.

In goods, India enjoyed a trade surplus of $41.18 billion with the US in 2024-25.