India likely to seek parity with US on tech access in bilateral trade talks

India is likely to ask the US to ease export controls and grant it access to critical technologies on par with key American allies like Australia, the UK, and Japan under the proposed bilateral trade agreement (BTA), sources said.

They added that India may seek these easing for sectors like telecom equipment, biotechnology, AI (artificial intelligence), pharmaceuticals, quantum computing and semiconductors.

The country is also seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes and bananas in the proposed pact with America.

On the other hand, the US wants duty concessions in sectors like certain industrial goods, automobiles (electric vehicles particularly), wines, petrochemical products, dairy, agriculture items such as apples, and tree nuts, they said.

As part of the proposed BTA, one of the sources said, India may request the US to place it on par with other key US allies including Australia, UK and Japan regarding access to technology through easing of export controls particularly in key areas like telecom equipment, biotechnology, and AI.

Easy access to cutting-edge technologies in these sectors would help boost India's innovation capabilities, enhance its technological infrastructure, and further push the country's economic growth.

The commerce ministry, which is leading the negotiations for the agreement, declined to comment when asked about these issues.

According to think tank GTRI, the US has eased export controls to strengthen technology partnerships with close allies like Australia, the United Kingdom, and Japan. The changes are designed to make collaboration easier in critical sectors.

It said that as part of the AUKUS security pact, the US has simplified rules for sharing defence and dual-use technologies with Australia and the UK. Beginning September 1, 2024, about 80 per cent of defence-related exports to these countries no longer require individual licences under revised US arms regulations.

In September 2024, Washington also introduced new global controls on exports related to quantum computing and semiconductor manufacturing.

However, trusted partners such as Australia, the UK, Japan, and other G7 nations are largely exempt from these new requirements, helping keep research and trade channels open, GTRI Founder Ajay Srivastava said. On India's request, he said, while Washington is eager to strengthen tech ties with India, especially under the Quad framework, it may stop short of offering full parity.

"American officials could point to ongoing concerns about India's export controls, intellectual property protections, cybersecurity standards, and military relationships with Russia. Rather than blanket exemptions, Washington may suggest mechanisms such as trusted partner programmes, project-specific licences, or expanded licensing exceptions for select Indian entities," Srivastava added.

The terms of references (ToRs) have been finalised by India and the US for the proposed agreement, which include around 19 chapters covering issues such as tariffs, goods, services, rules of origin, non-tariff barriers, and customs facilitation.

To give further impetus to the talks in the 90-day tariff pause window, an Indian official team was there in Washington to iron out differences on certain issues before formally launching negotiations for the pact.

The team, headed by India's chief negotiator Rajesh Agarwal, has concluded the three-day talks with his US counterpart. Agarwal is the additional secretary in the Department of Commerce.

The US remained India's largest trading partner for the fourth consecutive year in 2024-25 with bilateral trade valued at USD 131.84 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade.

With America, India had a trade surplus (the difference between imports and exports) of USD 41.18 billion in goods in 2024-25. It was USD 35.32 billion in 2023-24, USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22 and USD 22.73 billion in 2020-21. The US has raised concerns over this widening trade deficit.