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US-India Trade Talks: Non-Tariff Barriers and BTA Timeline

28 April 20251 min read
INTERNATIONAL AFFAIRSUS-India TradeTalks: Non-TariffBarriers and BTATimeline28 April 2025safalsetu.com

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

AreaComplaint
DPDP Act draft rules (USTR report)Burdensome duties on data fiduciaries; forced disclosure of personal data to government
Cross-border dataPossible bar on transfers to certain countries
Data localisationSector-specific rules to store data in India
Local contentHampers foreign competition
UPI and RuPaySeen as creating an uneven field
Telecom equipmentMandatory testing and certification add cost and delay
Taxes and dutiesDifferential tax treatment; high customs duty on IT products
Quality Control OrdersMany 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.

Test yourself

1. By which date did India hope to finalise an early BTA tranche with the US?

India hoped to finalise it by July 8, 2025, before the tariff pause expires.

2. Which US body flagged India's DPDP draft rules in its National Trade Estimate report?

The United States Trade Representative raised the concern.

3. Who is India's chief negotiator for the BTA talks with the US, per the notes?

Rajesh Agrawal leads the Commerce Department team.