NEW DELHI, India: The United States is pressing India to lower tariffs and increase defense purchases to secure a stronger bilateral trade agreement, U.S. Commerce Secretary Howard Lutnick said in an interview with India Today news channel this week.

India's high import tariffs, among the steepest globally, require reevaluation within the context of its "special relationship" with the U.S., Lutnick stated. He also urged India to shift defense procurement away from Russia and toward American-made equipment.

"We would like to focus on a bilateral conversation just between India and the United States—bring down the tariff levels that India has, that protects some of its areas," Lutnick said.

His comments come as U.S. President Donald Trump prepares to impose new reciprocal tariffs in early April, which have raised concerns among Indian exporters in sectors like automobiles and electronics.

After a recent meeting between Trump and Indian Prime Minister Narendra Modi, both nations agreed to work on resolving tariff disputes and aim for a phased trade deal by fall 2025, targeting bilateral trade worth US$500 billion by 2030.

Indian Trade Minister Piyush Goyal has been in the U.S. for trade negotiations and recently met with Lutnick to discuss potential agreements. Lutnick suggested a framework with quotas and limits for certain industries, particularly agriculture, which India has long protected to support small farmers.

"Maybe certain products have quotas. Maybe certain products have limits... And then we do the same thing on the other side and craft an agreement that makes sense for both of us," he said.

"The Indian agriculture market has to open up. It can't just stay closed," he added, emphasizing that India must reduce its trade barriers.

The U.S. has a $45.6 billion trade deficit with India. While America's trade-weighted average tariff rate stands at about 2.2 percent, India's average is around 12 percent, according to World Trade Organization data.

Lutnick also called for India to increase its reliance on U.S. defense technology.

"India has historically bought significant amounts of its military equipment from Russia, and we think that is something that needs to end," he said.

The U.S. plans to boost military sales to India starting in 2025. Trump recently announced the potential sale of F-35 fighter jets. India has purchased more than $20 billion in American defense products since 2008.

Concerning tariffs contributing to inflation, Lutnick dismissed the argument. "Inflation only comes from running deficits and printing money. Tariffs have not created inflation in India, so that argument is nonsense."