India-US Trade: Very Close To Framework Deal, Says Commerce Secretary Rajesh Agrawal

India is "very close" to cracking a framework deal with the US, commerce secretary Rajesh Agrawal said while briefing the press on Monday.

However, the secretary added that they would not like to put a timeline as to when it will be concluded. As many as six formal rounds of discussions for a full-fledged bilateral trade agreement or BTA and framework deal for tariffs have been conducted so far, as per Agrawal.

"We're in a zone where formal rounds may not be needed but engagement remains on", he stated.

India and the US began trade deal-related discussions this year, but the talks faced a brief period of disruption after President Donald Trump slapped Indian imports with tariffs as high as 50%.

The commerce secretary talked about India's textile export to the United States and said that US is a good market for textiles even though tariffs will have some impact.

Agrawal's comments come amid a India's trade deficit for the month of November narrowing driven by higher exports and dip in imports. The combined trade deficit was $24.53 billion last month, compared to $31.92 billion in the same period last year, as per data released by the government on Monday.

Notably, US exports have gone up $1.3 billion in November despite tariffs. According to the Commerce Secretary despite headwinds India was able to hold ground in textile exports. This indicates that the exporters have diversified.

The secretary also commented on the struggles of Indian exporters due to Trump's hefty tariffs and said that they are faced with 30% higher sanctions than competing countries.

Despite this, he added that the exporters are doing well to hold ties with US buyers. Agrawal also noted that the exporters have "fair expectations" that both countries will be able to reach a deal.

In the meantime, he underscored that the government will try to support them via Export Promotion Mission, which may not remove their pain entirely but will help in lessening it.

The secretary also highlighted that the liquidity crisis is being managed through moratorium and higher export credit via the Finance Ministry’s package.