India ‘far ahead’ in talks with US, terms of reference for trade deal finalised: Report

India and US Reportedly Finalising Trade Deal Terms

Exciting news on the trade front! India and the United States are reportedly in the final stages of agreeing on the terms for discussions on the initial phase of a bilateral trade agreement. According to Reuters, quoting a source, India is leading the pack in negotiations with the US.

The agreement, which sources suggest could be wrapped up within the next 90 days, is being touted as a potential “win-win” for both nations.

“We are far ahead in trade talks with the US compared to other countries… there are lots of possibilities in 90 days,” the official told Reuters.

It’s worth remembering that the US is currently India’s largest trading partner, with two-way trade exceeding $118 billion in 2023-24.

Trump’s Tariffs and India’s Response

Last week, the Trump administration announced a 26 per cent tariff on Indian products. However, India has so far refrained from imposing any retaliatory tariffs.

President Trump has granted a temporary pause on tariffs for certain countries, including India, to facilitate negotiations for favorable trade deals that could lead to reduced tariffs.

Trade discussions between the US and India are expected to continue virtually and regularly, according to a trade official who spoke with Reuters.

Navigating the Trade Landscape

Despite the tariff challenges, India has been proactive in engaging with the Trump administration, emphasizing that both countries share a common concern: China.

Union Commerce Minister Piyush Goyal stated earlier this week that manufacturers in both India and the US have suffered from China’s unfair trade practices over the years.

Reuters quoted an official as saying, “India is one of the first nations to start talks over a deal with the United States and to have jointly agreed to a deadline to conclude it.”

Looking Ahead

Back in February, India and the US committed to working on the first phase of a trade deal, aiming to finalize it later this year, with the ambitious goal of reaching two-way trade worth $500 billion by 2030.

Donald Trump, while announcing the tariffs, referenced his relationship with Prime Minister Modi, stating, “Their Prime Minister [Narendra Modi] just left [US recently]. He is a great friend of mine, but I said to him that ‘you’re a friend of mine, but you’ve not been treating us right’. India charges us 52 per cent, so we will charge them half of that – 26 per cent.”