US and India near framework trade deal to resolve 50% tariffs, with US officials due next week to finalise first tranche.
According to reports on December 4, a group of US officials is scheduled to travel to India the next week to discuss the proposed bilateral trade deal.
The visit is important since the US and India are trying to finish the first part of the agreement. The team’s arrival is anticipated next week
Following the implementation of a 25 percent tax and an additional 25 percent penalty on Indian goods entering the American market for purchasing Russian crude oil, this would be the second visit by US authorities.
Piyush Goyal, the minister of commerce and industry, also headed a formal delegation to the US on September 22 for trade negotiations.
Rajesh Agrawal, the ministry’s special secretary at the time, and other officials accompanied him. Agrawal is now the secretary of commerce in India.
Brendan Lynch is the USA’s chief negotiator for the agreement.
Agrawal recently said that India hopes to establish a framework trade agreement with the US this year, which should resolve the tariff issue to the benefit of Indian exporters, making the visit next week crucial.
Agrawal has stated that India is involved in lengthy negotiations with the US on a framework trade agreement that will address the reciprocal tariff barrier faced by Indian exporters today, while acknowledging that the Bilateral Trade Agreement (BTA) will take time.
In tandem, the US and India are negotiating a comprehensive trade agreement and a framework trade agreement to address tariffs.
The two nations’ leaders instructed officials to discuss a possible bilateral trade agreement (BTA) in February.
The first tranche of the agreement was supposed to be completed by autumn 2025. There have been six rounds of negotiations thus far. The agreement aims to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
Earlier in May, Goyal travelled to Washington. In Washington, he had discussions with US Commerce Secretary Howard Lutnick.
With bilateral trade at USD 131.84 billion (USD 86.5 billion in exports), the US continued to be India’s biggest trading partner for the fourth year in a row in 2024–2025.
About 18 percent of India’s total goods exports, 6.22 percent of its imports, and 10.73 percent of its total merchandise trade go to the US.
According to data from the commerce ministry, imports rose by 13.89 percent to USD 4.46 billion in October, while India’s merchandise exports to the US fell by 8.58 percent to USD 6.3 billion for the second consecutive month as a result of Washington’s high tariffs.
SOURCE – BUSINESS STANDARD
