India-US trade agreement: First phase of deal nearing finalization
What's the story
The first phase of the proposed bilateral trade agreement between India and the United States is close to being finalized. Commerce Secretary Rajesh Agrawal confirmed this on Monday, highlighting progress on key tariff-related issues. The deal, which has been under virtual discussions for months, aims to boost bilateral trade significantly. The trade talks come as the US has imposed 50% tariffs on most Indian exports. Half of this is a penalty linked to India's purchase of Russian energy.
Tariff negotiations
First phase to address reciprocal and oil tariffs
The first phase of the trade deal will address reciprocal tariffs and oil tariffs imposed on India. Agrawal said a package addressing these duties and US market access concerns is in its final stages, adding that "we should get a closure soon." The update comes as Commerce Minister Piyush Goyal expressed hopes for finalizing India's free trade agreements with the US and EU soon.
Awaiting response
India awaits formal response from US
India is still waiting for a formal response from Washington on the bilateral trade package. Both sides had aimed to finalize the first phase by fall. Despite the ongoing negotiations, officials have said that another round of talks is not required at this stage. The deal was formally proposed in February and aims to increase bilateral trade from the current $191 billion to $500 billion by 2030.