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Brinks Report > Blog > Business > India-US Trade Talks: Is BRICS the Hidden Game-Changer?
BusinessEconomy

India-US Trade Talks: Is BRICS the Hidden Game-Changer?

Dolon Mondal
Last updated: March 8, 2025 12:57 pm
Dolon Mondal
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Could a new trade deal between India and the US change the game for global economics? Let’s dive into the latest developments shaping this powerful partnership

In a recent development, US President Donald Trump announced that India has agreed to significantly reduce its tariffs. This move comes as part of ongoing negotiations aimed at strengthening the economic ties between the two nations. Trump emphasized the importance of fair trade practices, highlighting the challenges faced by US businesses in the Indian market.

The Bigger Picture: A Grand Deal in the Making

The discussions are being led by Indian Commerce and Industry Minister Piyush Goyal, who is currently in the US to finalize the details of a bilateral agreement. While the Indian government has remained tight-lipped about the specifics, the potential for a comprehensive deal is generating significant interest.

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US Commerce Secretary Howard Lutnick has called for a “grand” deal that goes beyond individual products, encompassing a wide range of sectors. He suggested that India should reconsider its defense purchases from Russia, emphasizing the benefits of a closer partnership with the US.

Also Read: Ukraine at a Crossroads: Will US Talks Bring a Turning Point?

Opening Up the Agricultural Sector

One of the key areas of discussion is the agricultural sector. Lutnick has urged India to open up its agricultural market, which has traditionally been protected due to domestic sensitivities. He proposed innovative solutions like quotas and limits to facilitate trade in American nuts, fruits, and poultry.

Lutnick believes that a bilateral trade agreement with the US, the world’s largest consuming economy, would be highly beneficial for India. He stressed the importance of stepping out of traditional trade models to explore new opportunities.

Addressing Broader Concerns

The US commerce secretary also touched upon India’s role in the BRICS group, which includes Brazil, Russia, China, and South Africa. He expressed concerns over China’s high tariffs. Additionally, he highlighted China’s proposal for a common currency within BRICS, which could challenge the dominance of the US dollar.

Lutnick emphasized the need for fair trade practices. He also stressed the importance of building a stronger relationship with India. Such measures, he suggested, would foster mutual growth and cooperation.

Also Read How a India-US Trade Deal Can Reshape the Global Economy

A Promising Future

As India and the US work towards a comprehensive trade agreement, the focus remains on creating a balanced and mutually beneficial partnership. The potential for increased trade in agriculture, defense, and other sectors holds promise for both nations. This collaboration could pave the way for a stronger economic alliance.

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TAGGED:Agricultural TradeBilateral AgreementEconomic PartnershipIndia-US TradeTariff Negotiations
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