India US relations: Interim trade agreement between India and America may be held by June 25, sources claim

News India Live, Digital Desk: A team of US officials is expecting to come to India next month for trade talks. Sources said that there is a possibility that the two countries may agree on the interim trade agreement by June 25.

He said, “The conversation is moving forward. Things are on track. ” Rajesh Aggarwal, the chief negotiator of India, Special Secretary in the Department of Commerce, completed his four -day Washington Yatra last week. He interacted with his American counterpart on the proposed agreement.

Commerce and Industry Minister Piyush Goyal was also in Washington last week to speed up trade talks. During his visit, he met US Commerce Secretary Howard Lutnik twice.

Both sides are considering the interim trade agreement before the first installment of the proposed bilateral trade agreement (BTA) as 26 percent of the US mutual tariffs on India are suspended till 9 July this year. It was planted by the US on 2 April. However, 10 percent baseline tariff imposed by the US on Indian goods is still applicable.

In the interim trade agreement, New Delhi is pressurizing domestic goods for full discount from 26 percent mutual tariff.

The two countries have set a deadline to complete the first phase of the proposed BTA by the end of this year (September-October).

The US will remain India’s largest trading partner in the fourth consecutive year 2024-25, which will be US $ 131.84 billion. America accounts for about 18 percent of India’s total goods exports, 6.22 percent in imports and 10.73 percent in the country’s total goods trade.

India’s trade surplus (difference between import and export) in terms of goods in 2024–25 with the US was US $ 41.18 billion. It was US $ 35.32 billion in 2023-24, US $ 27.7 billion in 2022-23, US $ 32.85 billion in 2021-22 and US $ 22.73 billion in 2020-21. The US has expressed concern over this growing trade deficit.

The two business partners aim to increase bilateral trade from double to US $ 500 billion by 2030.

According to a report by the Ministry of Finance, a successful US-India bilateral trade agreement can turn the current adverse conditions into favorable conditions, which can open access to new markets and promote exports.

In order to promote bilateral trade, India is demanding a fee concession for labor, gems and jewelery, leather items, apparel, plastic, chemicals, shrimp, oilseeds, chemicals, grapes and bananas in the proposed agreement with the US.

On the other hand, the US wants fee concession in areas such as some industrial goods, automobiles (especially electric vehicles), wine, petrochemical products, dairy, and agricultural products such as apple, tree kernel and GM (geneticly modified) crops.

While the import of GM crops from the US is still closed due to regulatory criteria in India, New Delhi Alpha Alpha is open for import of non-GM products such as alpha alpha grass (a type of animal feed).

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