US-India Trade Talks: Non-Tariff Barriers and BTA Timeline
Why in the news
Trade talks between the two countries highlighted non-tariff barriers that limit American firms’ access to India. Such issues are being handled through side letters exchanged by trade ministers, outside the formal agreement framework.
US concerns
| Area | Complaint |
|---|---|
| DPDP Act draft rules (USTR report) | Burdensome duties on data fiduciaries; forced disclosure of personal data to government |
| Cross-border data | Possible bar on transfers to certain countries |
| Data localisation | Sector-specific rules to store data in India |
| Local content | Hampers foreign competition |
| UPI and RuPay | Seen as creating an uneven field |
| Telecom equipment | Mandatory testing and certification add cost and delay |
| Taxes and duties | Differential tax treatment; high customs duty on IT products |
| Quality Control Orders | Many orders across products frustrate US firms |
- The Coalition of Services Industries (CSI), including Google, Amazon and Mastercard, raised the local content, payments, telecom, tax and duty points.
- USTR raised the data issues in its National Trade Estimate report.
- Expert Sanjay Notani (Economic Laws Practice) said barriers must be tackled sector by sector, covering licensing, standards and testing in metals, chemicals, capital goods and telecom.
Deal timeline
- US Treasury Secretary Scott Bessent expected India to strike its first bilateral deal to avoid reciprocal tariffs.
- An India team led by Rajesh Agrawal (Chief Negotiator, Commerce Secretary-designate) visited Washington DC.
- Target for the first BTA tranche: fall of 2025; India wants an early tranche by July 8, 2025, before the pause on country-specific tariffs lapses.
Exam angle
- Terms: non-tariff barrier, side letter, DPDP Act, QCOs.
- Dates: July 8, 2025 and fall 2025.