India–US Likely to Sign Interim Trade Deal Soon: Talks in Final Phase

 

India and the United States are on the verge of signing an interim trade agreement, with discussions between both countries reaching an advanced and productive stage. Indian Commerce and Industry Minister Piyush Goyal recently hinted at the development in an official post, indicating that meaningful progress has been made.

 

This potential agreement is expected to cover various tariff and non-tariff issues across multiple sectors, including goods, services, and investment. India has been pushing for duty concessions on sectors like labor-intensive exports, textiles, gems &jewelry, and food products, while the US is seeking lower duties on industrial goods such as electric vehicles, wine, and almonds.

 

Minister Goyal emphasized that both sides have maintained a positive dialogue, and mutual understanding has improved on several long-standing issues. He acknowledged that while some complex matters—such as dairy product imports—remain unresolved, significant ground has been covered.

 

Key Highlights:

• India is aiming for relief on duties related to its employment-generating sectors.
• The US wants tariff cuts on dairy, wine, apples, and industrial products.
• Despite sticking points, the interim deal is seen as a stepping stone toward a comprehensive Free Trade Agreement (FTA).
•  

India–US Trade in Numbers:
The US has become India’s largest trading partner, with bilateral trade reaching $118.28 billion in 2023–24, up from $113.83 billion in 2022–23 and $119.48 billion in 2021–22. India’s exports to the US alone stood at $77.52 billion in 2023–24, while imports from the US amounted to $40.76 billion.

If the interim agreement materializes, it will pave the way for deeper economic cooperation and potentially a full-fledged FTA in the future, significantly boosting bilateral ties.