The BGA India team, led by Managing Director Anuj Gupta, wrote an update to clients on the Indian government’s tariff negotiations with the United States and European Union.

Context

  • Indian and U.S. officials are actively engaging to secure an early-stage trade deal ahead of the looming July 8 deadline for reciprocal tariffs. In parallel, India is accelerating efforts to diversify its export markets by fast-tracking trade talks and investments with blocs such as the European Union and European Free Trade Association (EFTA) as well as other trading partners, such as Australia, the United Kingdom and the United Arab Emirates.
  • Assistant U.S. Trade Representative Brendan Lynch and his team visited New Delhi from June 4-10 to advance bilateral trade agreement (BTA) negotiations. Subsequently, India’s chief negotiator and Special Secretary Rajesh Agarwal and his delegation were in Washington, D.C., from June 26-29 to bridge differences in the BTA.
  • In parallel, high-level delegation visits to the United States have sought to strengthen strategic ties while calling for an early conclusion of the BTA. Foreign Secretary Vikram Misri and Deputy National Security Adviser Pavan Kapoor visited Washington, D.C., from May 27-29 to advance the U.S.-India comprehensive strategic and technology partnership launched earlier by Indian Prime Minister Narendra Modi and President Trump: “Catalyzing Opportunities for Military Partnership, Accelerated Commerce and Technology (COMPACT).”
  • Commerce and Industry Minister Piyush Goyal and Jaishankar made simultaneous visits to Europe in June to accelerate trade and investment talks with the EU. The visits also signal India’s view that Europe may demonstrate greater supply chain and security strength in the coming years, amid shifting dynamics between the United States, Russia and China.

Significance

  • Frequent talks and bilateral visits are efforts both sides are taking to finalize the BTA ahead of the July 8 deadline for reciprocal tariffs. Secretary Agarwal’s visit was extended by a day, reflecting momentum on both sides to bridge the remaining gaps. Trade Minister Goyal also highlighted that negotiations are proceeding toward a nice, fair, equitable and balanced agreement to promote business. However, India continues to tread cautiously on sensitive issues, particularly on genetically modified crops and dairy market access.
  • India’s proactive engagement with other markets, including the EU, the United Kingdom, Australia and the United Arab Emirates, reflects a strategic shift toward deepening trade ties and enhances long-term trade resilience. Engagements in Europe focusing on the green transition, digitalization and resilient supply chains align with India’s long-term growth and industrial priorities. They also reaffirm the shared commitment of India and the EU to conclude a bilateral trade agreement by the end of this year.
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Implications

  • India-EU trade talks progress could unlock newer export avenues in pharmaceuticals, textiles, green tech and services, partially offsetting U.S.-related losses. Further, the implementation of the EFTA agreement could open new investment opportunities for Indian stakeholders.
  • Advancing trade ties with the EU and EFTA may boost investor sentiment in sectors like clean energy, digital tech and manufacturing. Strengthened India-U.S. cooperation in technology and defense, as reaffirmed during high-level visits, may also support aerospace, semiconductors and digital infrastructure.

If you have questions or comments, please contact BGA India Managing Director Anuj Gupta at agupta@bowergroupasia.com.

Best regards,

BGA India Team

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Managing Director

Anuj is a distinguished policy leader and strategist who has played a catalytic role across India’s government and private sector, guiding stakeholders through the country’s complex and evolving policy and investment landscape. As BGA’s India practice leader, he helps clients leverage the country’s rapid economic growth to advance their goals and strategies.  Anuj previously led public policy efforts for the Tata Group, India’s largest business conglomerate, where he advised more than 30 group companies on policy affairs strategy. His interventions directly influenced high-stakes outcomes across diverse sectors, including technology, finance and manufacturing.   Anuj spent a decade in the Indian and Abu Dhabi governments, where he ... Read More