Minister of Commerce and Industry Piyush Goyal announced that the initial portion for the India-US trade deal has almost been finalised, highlighting that 99% of the first tranche of the deal has been agreed upon.
Goyal also informed that part of US trade team has arrived, and rest will arrive later today. The talks are expected to be held between June 2 and 4, the Commerce Minister said while speaking to reporters on Monday.
The government is aiming to sign the first tranche of the deal during this round of talks, Goyal underlined while adding that the Indian negotiating team is working around the various regulatory hurdles that came up in the US while finalising the deal.
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What To Expect From Potential Deal?
On Feb. 7, India and the US issued a joint statement outlining the framework for the first phase of a BTA. The two sides are now working to finalise its legal text. The framework reaffirmed their commitment to broader trade negotiations.
One of the key highlights of this proposed agreement was that the US agreed to lower tariffs on Indian goods to 18% and remove certain duties linked to India's purchase of Russian oil. The proposed tariff reduction comes as a major relief for India after months of trade tensions with the US. Earlier, steep tariffs of up to 50% had affected Indian exports and investor sentiment.
With the latest talks, officials believe greater clarity on the trade deal could help restore business confidence. However, the Indian officials have described some of Washington's demands as difficult and “unconventional”.
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In February, the US Supreme Court struck down Trump's reciprocal tariff policy. Following the ruling, the US introduced a uniform 10% tariff on imports from all countries for a 150-day period. This is expected to give India an edge in the latest discussions.
India has maintained that it will continue buying Russian crude oil despite pressure from Washington. The US had earlier imposed an additional 25% tariff on India over purchases of Russian oil, resulting in overall 50% tariffs.
Under the framework agreed earlier this year, India had proposed reducing or eliminating tariffs on several US industrial and agricultural products. These included animal feed ingredients, fruits, tree nuts, soybean oil, wine and spirits. Additionally, New Delhi had also indicated plans to purchase about USD 500 billion worth of US energy products, aircraft, technology goods and coking coal over five years.
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