India's Push for Technology Access Parity in Bilateral Trade Agreement with the US

India is set to press the United States to ease its export controls and provide access to critical technologies on par with the US’s close allies, such as Australia, the UK, and Japan, in ongoing trade agreement negotiations. The proposed Bilateral Trade Agreement (BTA) seeks to address disparities in technology access, benefiting India's technological growth and innovation.

India to press for technology access parity with US allies in new trade agreement talks | Financial Express

India’s Requests for Technology and Sector-Specific Concessions

India is expected to request relaxation of export restrictions in key high-tech areas, including telecom equipment, biotechnology, artificial intelligence (AI), pharmaceuticals, quantum computing, and semiconductors. Gaining access to these advanced technologies is vital for India’s technological advancement, enhancing its innovation capabilities and economic development.

In return, India will likely seek duty concessions for labor-intensive sectors like textiles, gems and jewelry, leather goods, garments, chemicals, shrimp, oil seeds, and fruits such as grapes and bananas. These sectors are vital to India’s export economy, and easing duties would provide a much-needed boost to these industries, helping expand their market access.

US Demands for Concessions and Reciprocal Access

The United States is expected to seek concessions in industrial goods, automobiles (particularly electric vehicles), wines, dairy products, and agricultural items like apples and tree nuts. These sectors are strategic to the US economy, and any agreement will need to offer mutual market access while balancing the economic interests of both countries.

India’s Technology Access Request

India’s primary request focuses on receiving similar treatment to that of other US allies in accessing advanced technologies. This would involve easing export controls on sectors such as telecom, biotechnology, and AI to foster collaboration and support India’s technological infrastructure. While the US has extended such privileges to other nations, including Australia, the UK, and Japan, India’s request may be met with cautious deliberation. The US may introduce alternatives like trusted partner programs or project-specific licenses rather than blanket exemptions, partly due to concerns over India’s export controls, intellectual property standards, cybersecurity, and its defense ties with Russia.

Trade Relations and Current Status

The trade relationship between India and the US has flourished, with the US remaining India’s largest trading partner for the fourth consecutive year in 2024-25. Bilateral trade reached USD 131.84 billion, comprising a significant share of India’s exports. However, the US has raised concerns over India’s growing trade surplus, which reached USD 41.18 billion in 2024-25. This increasing imbalance will likely feature prominently in the ongoing negotiations.

Conclusion: Moving Forward with the BTA

The terms of reference (ToRs) for the proposed BTA, which cover tariffs, goods, services, and customs facilitation, have already been finalized. Preliminary discussions have taken place, and both sides are keen to resolve remaining issues. With the 90-day tariff pause offering an opportunity for formal talks, momentum is expected to build, paving the way for a comprehensive trade agreement that balances the interests of both India and the United States.

(With inputs from MSN)