India, US eye preliminary 'mini' trade agreement amid tariff concerns
What's the story
India wants to fast-track a critical bilateral trade deal with the United States, according to a report by the Mint. This comes amid growing concerns over the wide-ranging tariffs announced by US President Donald Trump. Notably, officials from both countries are interested in finalizing a preliminary 'mini' trade agreement before a comprehensive deal. It would exclude crucial topics like intellectual property and immigration.
Agreement details
Preliminary agreement to benefit Indian pharma, agriculture
The proposed 'mini' trade agreement may provide relief for some products in the pharma sector, as well as lentils and almonds, according to the Mint report. New Delhi wants to finalize the contours of the pact based on the structure in trade pacts with other nations such as Australia and the UAE. This template aligns with New Delhi's strategy of balancing domestic interests along with global demands.
Discussions ongoing
Preliminary pact discussions underway
Discussions for the preliminary pact are underway, ahead of a comprehensive Bilateral Trade Agreement (BTA), which was part of a joint statement by PM Narendra Modi and Donald Trump in February. Commerce Minister Piyush Goyal is all set to meet traders and major exporters this week amid trade pact discussions.
Tariff reduction
India works on reducing tariffs
As talks of the trade agreement continue, New Delhi is working on reducing the average applied levy on imports from America. At present, New Delhi's weighted average tariff on US exports is 9.5%. While the Centre is looking for an exemption from the new round of tariffs, Trump has often repeated that India will not be given any special treatment.