This week, India announced it would work to cut bureaucratic hurdles and improve import procedures, as one of the world’s largest economies works towards a comprehensive trade deal with one of its key trading partners, the U.S.
What the U.S. wants from India on trade
Seeking to find major relief from the steep 50% tariffs imposed by President Donald Trump earlier this year, the Indian government has agreed to address its import quality control procedures, regulations that the U.S. calls “burdensome” and a roadblock to an eventual trade deal.
As part of the proposed reforms, India’s government, led by Prime Minister Narendra Modi, will focus on making the import process – for the U.S. and other trade partners – easier. Areas subject to reform include quicker turnaround times for allowing certain imports into India, less paperwork to import goods, streamlined inspections of inbound goods, among other items of focus.
The U.S. government imposed a steep 50% tariff on Indian exports to the U.S. earlier this year after India refused to completely cut off its purchases of Russian oil. The U.S. had demanded India end Russian oil imports given Russian leader Vladimir Putin’s icy relationship with the second Trump administration, among other reasons.
Signs of progress on U.S.-India trade talks for a large deal
As the U.S. and India have continued trade talks throughout 2025, there have been some signs of progress. Recently, the U.S. announced intentions to export soybeans and corn to Indian farmers, which would be a boon to the sprawling U.S. agricultural industry.
The latest round of talks ended earlier in December without a comprehensive trade deal, but with progress being made, two of the world’s largest trading partners may soon “find a way” to a broad trade consensus out of necessity.
The leading trade partners want to make it easier to do business with each other
India and the U.S. hope to improve the areas of goods that are imported and exported between both countries, while the U.S. is hoping for India’s government to make it easier, less costly, and less time-consuming for U.S. companies to do business in India. Over the past 15 years, India’s economy has boomed and exploded in size, becoming a leading trade player in world trade. When Trump initially announced the steep tariffs against India, it caused fears on world markets that an icy relationship would hurt the global economy, although the worst outcomes have seemed to be avoided, for now.
