India-US trade talks begin today: Tariffs, AI, pharma on cards, what to expect

India and the US began trade talks in Delhi on June 1, running through June 4, to finalize an interim trade agreement. The discussions will focus on tariffs, artificial intelligence, pharmaceuticals, market access, non-tariff measures, and customs facilitation. US Ambassador Sergio Gor previously stated that negotiations are in their final stretch, with 99% of the deal resolved, and an agreement expected within weeks. Bilateral trade between the two nations has surged from $20 billion to $220 billion over the past two decades. India’s Commerce Minister Piyush Goyal visited the US last week to expand cooperation in financial services, healthcare, manufacturing, AI, and digital payments. Gor highlighted India’s role as a trusted supplier of generics, with the US importing 40% of its generics from India, emphasizing the critical nature of these life-saving drugs. The talks also aim to strengthen supply chains in AI, semiconductors, and quantum computing, with India set to join a network of trusted ecosystems. A framework for cooperation in the critical minerals sector was finalized, addressing concerns over China’s export controls on rare earth elements. Gor noted alignment between India’s economic growth and US expertise in energy, aviation, R&D, and digital infrastructure. Goyal emphasized investor confidence, business stability, and a predictable regulatory environment as priorities for India’s government. The negotiations follow a decade of growing trade ties, with both countries positioning themselves as key partners in innovation, investment, and high-value sectors.