India, US might finalize interim trade deal by June 25
What's the story
India and the United States are in advanced talks for an interim trade deal, which could be finalized by June 25, PTI has reported.
The agreement is likely to suspend the 26% reciprocal tariff that has been imposed by the US.
A team of US officials is tipped to visit India next month for further discussions on this potential pact.
Progress
Key negotiators conclude discussions in Washington
India's chief negotiator, Rajesh Agrawal, Special Secretary in the Department of Commerce, recently wrapped up a four-day visit to Washington.
He held talks with his US counterpart on the proposed agreement.
Commerce and Industry Minister Piyush Goyal was also in Washington last week to push forward trade talks. He met US Commerce Secretary Howard Lutnick twice during his stay.
Tariff negotiations
India seeks full exemption from US's reciprocal tariff
In the interim trade agreement, India is pushing for a complete exemption from the 26% reciprocal tariff on domestic products.
The two countries have set a deadline to finish the first phase of their proposed bilateral trade agreement (BTA) by end of this year.
The US has been India's largest trading partner for four consecutive years, with bilateral trade worth $131.84 billion in 2024-25.
Trade balance
India maintains trade surplus with the US
India had a trade surplus of $41.18 billion with America in goods for 2024-25. The two trading partners hope to raise their bilateral trade to around $500 billion by 2030. A successful US-India bilateral trade agreement could open new market access and energize exports.
Sectoral concessions
India and US seek duty concessions in various sectors
To increase bilateral trade, India is seeking duty concessions for labor-intensive sectors such as textiles, gems and jewelry, leather goods, chemicals, shrimp, garments, plastics, oil seeds, grapes, and bananas.
The US wants duty concessions in some industrial goods, automobiles (electric vehicles), wines, dairy, petrochemical products, and agriculture items such as apples and tree nuts.