India and the United States have finalized the terms of reference for discussions regarding the initial portion of a bilateral trade agreement, signaling a significant step forward in their economic relationship. A trade official stated on Friday, April 11, 2025, that there is a potential for the deal to take shape within the next 90 days, presenting a "win-win" opportunity for both nations.
The announcement comes amid a broader context of fluctuating trade dynamics, particularly with the recent pause on tariff hikes by US President Donald Trump. On April 9, Trump had declared a 90-day suspension of most tariff increases for major trading partners, including India. This pause offers temporary relief for Indian exporters, many of whom have been navigating the complexities of international trade amidst rising tensions with China.
In February, India and the US had agreed to initiate discussions on the first phase of a trade deal aimed at achieving bilateral trade worth $500 billion by 2030. The Indian trade official, who spoke on condition of anonymity due to the sensitivity of the negotiations, expressed optimism about the ongoing talks, stating, "We are far ahead in trade talks with the US compared to other countries... there are lots of possibilities in 90 days." This sentiment reflects a growing confidence among Indian officials regarding the potential for a successful agreement.
The trade discussions are set to continue virtually and regularly, with expectations of delegation-level visits from both sides as part of the negotiations. Furthermore, US Vice President JD Vance is anticipated to visit India soon, further underscoring the importance of these discussions.
In addition to the trade talks, Prime Minister Narendra Modi inaugurated 44 development projects worth Rs 3,880 crore in Varanasi on the same day. These projects include significant investments in rural development, such as 130 drinking water projects, 100 new Anganwadi centers, 356 libraries, and educational institutions including a polytechnic college and a government degree college. The Prime Minister also inaugurated a transit hostel at the Police Lines and police barracks in Ramnagar, along with four rural roads.
Meanwhile, the US has taken a firm stance on sanctions, recently imposing restrictions on Jugwinder Singh Brar, an Indian national based in the UAE, and two India-based entities involved in shipping Iranian oil. This action, announced on April 10, 2025, is part of broader efforts to curb illicit oil trade and enforce compliance with international sanctions.
Commerce and Industry Minister Piyush Goyal reiterated on Friday that India does not intend to encourage foreign direct investments (FDI) from China, emphasizing the government's commitment to maintaining strict investment regulations established in 2020. "As of now, there's hardly any foreign direct investment from China... Nor are we encouraging any significant investment coming in from China at all. At the moment, that is the policy," Goyal stated. This position comes amid discussions about potentially easing restrictions to attract technology and capital.
In a related development, the Securities and Exchange Board of India (Sebi) issued a warning to the public regarding manipulative activities related to the securities market on social media platforms. The regulator noted a surge in fraudulent activities across platforms like YouTube, Facebook, and Instagram, urging investors to engage only with Sebi-registered intermediaries.
On the environmental front, major nations have agreed on the first-ever global tax on greenhouse gases, specifically targeting the shipping industry. This agreement marks a significant step in international efforts to combat climate change.
In Delhi, PWD Minister Parvesh Verma announced plans for a new flyover at a cost of Rs 183 crore to alleviate congestion between Civil Lines and Signature Bridge. The six-lane flyover will span 680 meters and aims to improve traffic flow in the area.
In the real estate sector, state-owned NBCC successfully sold 560 residential units at Aspire Leisure Park in Greater Noida through an e-auction, generating approximately Rs 1,153.13 crore. This follows the sale of 1,185 units for Rs 1,504.69 crore the previous day, showcasing the robust demand in the housing market.
Infosys chairman Nandan Nilekani highlighted India's unique position to leverage its digital public infrastructure (DPI) alongside artificial intelligence (AI) to foster transformative applications. Speaking at Carnegie India's Global Technology Summit, Nilekani acknowledged the challenges in scaling AI but emphasized the potential for innovation in India.
Industrial production growth has slowed to 2.9% in February, raising concerns among economists about the sustainability of the economic recovery. In a separate case, a consumer commission in Nagpur directed Oriental Insurance Company Limited to pay Rs 3 lakh to the family of a cyclist killed in an accident, ruling that the company’s demand for a driving license was inappropriate.
Union Health Minister J P Nadda launched the Ayushman Bharat scheme in Odisha, aiming to improve healthcare access for citizens. Additionally, Odisha Chief Minister Mohan Charan Majhi announced a two percent hike in dearness allowance for state government employees and pensioners, effective retroactively from January 1, 2025.
As India and the US navigate through these multifaceted developments, the potential for a fruitful trade agreement remains a focal point for both nations, poised to enhance their economic ties in the coming months.
