US-India Trade Agreement Nears Finalization
US Commerce Secretary Howard Lutnick has indicated that a trade deal between the United States and India could be finalized in the near future. Speaking at the eighth US-India Strategic Partnership Forum, Lutnick explained that both nations have identified terms that are mutually beneficial, signaling significant progress ahead of the upcoming face-to-face negotiations scheduled in New Delhi.
Positive Outlook from US Officials
During his keynote address, Lutnick expressed optimism about the timing and outcome of the agreement, stating, "You should expect a deal between the United States and India in the not too distant future because I think we found a place that really works for both countries." He also highlighted the importance of effective negotiation teams on both sides that have contributed to advancing discussions.
Additionally, Lutnick suggested that India might receive advantageous terms by participating early in the new wave of trade agreements. He noted that countries concluding deals sooner tend to secure better conditions, mentioning the ongoing efforts by India to finalize the agreement prior to other scheduled discussions.
India's Commitment to Strengthening Trade Ties
India has similarly expressed a proactive approach towards concluding the bilateral trade agreement. Commerce and Industry Minister Piyush Goyal reaffirmed India's commitment to enhancing mutual market access. Speaking during an event in France, he emphasized that both countries are dedicated to working collaboratively to provide favorable trade terms and facilitate increased business opportunities.
Details and Objectives of the Proposed Deal
The proposed India-US trade pact, initially announced earlier this year, is designed to be a multi-sector agreement. The first phase aims for completion by September-October 2025. Its overarching objective is ambitious, intending to more than double the bilateral trade volume from USD 191 billion currently to USD 500 billion by 2030.
A delegation from the United States is currently engaging with Indian officials in New Delhi to advance discussions on an interim agreement expected to be finalized by the end of June. A key point of negotiation is India's request for a full exemption from the reciprocal 26% tariff imposed by the US on Indian exports.
Looking Ahead
The successful conclusion of this trade deal would mark a significant milestone in India-US relations and is anticipated to open the door for increased economic cooperation across various sectors. With both sides demonstrating strong intent and ongoing dialogue, the trade agreement appears poised to be finalized in the coming months.