India's ongoing trade talks with the United States are progressing well, with both sides working towards a resolution that could significantly impact bilateral agreement, an official source tells NDTV Profit.
However, the Indian industry is learnt to be increasingly concerned about the potential consequences of reciprocal tariffs that may arise if the negotiations are not concluded swiftly, the source said.
“India Inc is urging the government to either secure a deferment of these tariffs or provide protective measures to shield them from the potential fallout,” a source said.
The growing concerns stem from fears that, without a timely deal, industries could face severe economic disruption, leading to job losses and a negative impact on key sectors.
"The industry are demanding to do it (bilateral trade agreement) as fast as possible; otherwise they will suffer from the US reciprocal tariffs. Everyone is writing to protect them from its possible impact," they added.
The formal commencement of the negotiations for the trade pact is expected soon. Lynch's visit comes on the heels of the April 2 reciprocal-tariff-imposition deadline, one that has been repeatedly used as a threat by Trump, while asking trading partners like India to reduce tariffs on a variety of American products.
The first tranche of the BTA is expected to be finalised by September this year, and will likely cover issues related to tariff reductions, while others such as visas and technology transfers might be touched upon in the second tranche.
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