India-US Trade Talks: Hopeful Of Reaching Pact To Address Tariffs By Year-End, Says Senior Official
Commerce Secretary Rajesh Agrawal emphasised that while a Bilateral Trade Agreement will take time, this framework deal is critical for clearing the path and delivering immediate benefits to trade.
India is optimistic about finalising a crucial trade deal framework with the United States within this calendar year, a senior official said on Friday, adding that the move is intended to address the reciprocal tariff hurdles currently impacting Indian exporters.
Speaking at the 98th Annual General Meeting and Convention of industry body FICCI, Commerce Secretary Rajesh Agrawal emphasised that while a Bilateral Trade Agreement will take time, this framework deal is critical for clearing the path and delivering immediate benefits to trade.
The secretary noted that the two nations are currently engaged in two distinct and parallel negotiations, with one focused on the comprehensive BTA, and the other on the immediate framework deal designed to tackle tariffs.
The framework, Agrawal explained, must come first as it will feed into the long-term BTA negotiations. This is crucial because the overall trade deal will only be truly beneficial if both sets of 25% tariffs, one imposed for the lack of a formal BTA and the other for India’s purchase of Russian oil, are addressed.
Agrawal assured the audience that negotiators from both sides have made progress. He said the current stage as being "close" to a resolution, with most issues "ironed out." The remaining points are now minimal, requiring not more negotiation, but a high-level "political call" to be taken by both governments to finalise the announcement.
While expressing strong optimism for a resolution in 2025, the secretary offered a note of caution, stating that any trade negotiation can miss a deadline if even "one sticking point" remains in the mind of one of the partners.
He recalled that the path toward a first tranche of the BTA by the fall of 2025 was disrupted by global trade landscape changes, including the imposition of US tariffs.
"Things have changed and moved a lot from February 13 onwards. When we got into the BTA negotiations, we were on the path to a good, aspirational first tranche by the fall of 2025, but in between, we have seen a lot of changes in the global trade landscape," the secretary said.
Further, he noted India’s focus on integrating Foreign Direct Investment (FDI) into trade agreements, citing the India-EFTA pact’s ambition to secure $100 billion in foreign investment over time.
(With inputs from PTI)
