India, U.S. Likely to Sign Mini Trade Deal by July

 

India and the United States are in the final stages of negotiations for a mini trade deal under the Bilateral Trade Agreement (BTA), and an agreement may be reached before the first week of July. The two countries are working to resolve tariff issues in selected sectors, paving the way for deeper economic cooperation.

According to the Ministry of Commerce and Industry, negotiations between Indian and U.S. trade officials are progressing positively. Talks were held during the visit of U.S. Trade Representative Katherine Tai to India from April 23–25. The main focus was to explore solutions before the end of the Generalized System of Preferences (GSP) tariff exemption, which is set to expire in July.

Officials stated that the primary discussions centered on reducing or eliminating tariffs on specific items traded between the two nations. While the initial round of the BTA may conclude by year-end, this mini deal is likely to be finalized earlier.

India is pushing for duty exemptions on industrial items, excluding automobiles, where the impact of tariff reductions is not significant. Experts argue this will benefit India, as it will enable Indian goods to remain competitive in the U.S. market.

Ajay Srivastava, founder of Global Trade Research Initiative, said,

“India’s industrial items, excluding automobiles, will not face any loss from zero-duty concessions. Rather, India can benefit by maintaining a presence in the U.S. market. American imports of Indian items will continue, and India’s domestic markets will remain unaffected.”

Ajay Sahai, Director General of the Federation of Indian Export Organizations, added,

“The U.S. will want to finalize sector-specific tariff agreements with India and others before its own GSP deadline. If this isn't done, exemptions could go to China and other countries, reducing India’s share. Hence, America is also under pressure to conclude the agreement quickly.”

Once signed, this mini trade deal will exempt selected goods from mutual tariffs, opening up enhanced market access between the two economies. Negotiators on both sides are optimistic about finalizing terms before the July deadline.