India Seeks Advanced Tech Access in Bilateral Trade Talks with the US

India is seeking relaxed US export controls and access to advanced technologies under the proposed Bilateral Trade Agreement (BTA), aiming to boost sectors like AI, semiconductors, and biotechnology. It also seeks tariff cuts on exports such as textiles and gems. Meanwhile, the US wants duty reductions on industrial goods and agricultural products. Although India hopes to match the tech access granted to US allies, challenges like export control concerns persist. The negotiations aim to balance trade surplus and mutual priorities.

India is gearing up to formally request the United States for relaxed export controls and access to cutting-edge technologies as part of the proposed Bilateral Trade Agreement (BTA). According to sources cited by PTI, New Delhi’s appeal centers on obtaining concessions similar to those extended by the US to key allies such as Australia, Japan, and the United Kingdom.

India’s Technology and Trade Goals

India aims to bolster its technological and industrial capabilities by seeking enhanced access to sectors like telecommunications, biotechnology, artificial intelligence (AI), quantum computing, semiconductors, and pharmaceuticals. At the same time, India is advocating for reduced tariffs on labor-intensive exports, including textiles, gems and jewelry, leather goods, garments, plastics, chemicals, shrimp, oil seeds, and fruits like grapes and bananas.

On the other hand, the US has its own priorities in the negotiations. It is particularly interested in obtaining duty concessions on industrial goods, electric vehicles, wines, petrochemicals, dairy products, and agricultural exports such as apples and tree nuts.

A Push for Parity in Technology Access

India’s request for technology access parity with close US allies is rooted in its ambition to strengthen its innovation ecosystem and economic growth. However, achieving full parity may prove challenging. According to Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), while the US is eager to deepen its tech partnership with India under frameworks like the Quad, Indian efforts may face hurdles. Concerns over India’s export control mechanisms, intellectual property protections, cybersecurity measures, and defense ties with Russia could influence Washington’s stance.

Rather than granting blanket exemptions, the US might explore alternatives such as trusted partner programs, project-specific licenses, or expanded licensing exceptions for certain Indian firms, Srivastava suggested.

Eased Export Controls for Strategic Allies

Recent US policies demonstrate a willingness to relax export controls for trusted allies. For instance, under the AUKUS security pact, the US has significantly reduced licensing requirements for defense-related exports to Australia and the UK. Furthermore, new restrictions on quantum computing and semiconductor exports introduced last year largely exempt G7 nations such as Japan, the UK, and Australia, enabling smoother technology sharing among these nations.

India hopes to leverage these precedents to secure favorable terms under the BTA, but experts caution that a similar level of access may not be immediately forthcoming.

Navigating Negotiations

The BTA’s framework reportedly spans 19 chapters, addressing diverse issues such as tariffs, trade in goods and services, rules of origin, non-tariff barriers, and customs procedures. To address outstanding challenges, an Indian delegation recently visited Washington. Formal negotiations are expected to take place during the current 90-day tariff pause period, which began on April 10.

India-US Trade: A Strong Partnership

The US has been India’s largest trading partner for four consecutive years, with bilateral trade reaching $131.84 billion in 2024-25. The US accounted for 18% of India’s total goods exports and 10.73% of its overall merchandise trade during this period. Notably, India maintained a trade surplus of $41.18 billion with the US in 2024-25, continuing a trend of rising surpluses over the years.

However, the growing trade imbalance has raised concerns in Washington, adding another layer of complexity to the ongoing negotiations.

As India and the US prepare to deepen their economic ties through the BTA, the negotiations will likely balance India’s push for technology access and tariff reductions with the US’s focus on addressing trade imbalances and securing market access for its exports. While both nations share a strong and growing trade relationship, the road to a mutually beneficial agreement will require navigating a complex web of priorities and concerns.