New York, Feb 3 (NationPress) The recent conclusion of India’s free trade agreement (FTA) with the European Union may have influenced the United States to pursue a trade deal with India, a South Asia expert from the Asia Society noted.

Farwa Aamer, director of South Asia Initiatives at the Asia Society Policy Institute (ASPI), stated, “While India-US trade discussions have been ongoing, the recent EU agreement might have acted as a catalyst for the US to accelerate negotiations”.

“The timing is intriguing, as this deal follows closely after the EU-FTA,” she added.

Both Prime Minister Narendra Modi and US President Donald Trump announced a trade agreement aiming to decrease the tariffs on India's exports to 18%, down from the 25% imposed by Washington last year.

As per the White House, the US will also rescind the punitive 25% tariff that Trump had enforced on India regarding purchases of Russian oil.

This significant development emerged after nearly a year of often tumultuous negotiations between the two nations.

“For India, the issue with Russia persists,” Aamer remarked. “Even as it shifts its oil import strategy away from Russia, maintaining stable relations remains a priority.”

The agreement was revealed following a phone discussion between PM Modi and President Trump.

Aamer emphasized, “It was ultimately the engagement at the leadership level that has been discussed since the outset that facilitated the deal.”

Wendy Cutler, an expert with extensive trade experience, noted that the India-US agreement would provide India with a competitive edge over its Southeast Asian rivals.

“Crucially, the US reciprocal tariff for India will drop to 18%, giving Indian exporters a slight advantage in the US market compared to their ASEAN counterparts, who face tariffs between 19-20%,” she explained.

Cutler, who previously served as the acting Deputy US Trade Representative and is now senior vice president at ASPI, suggested that the US likely secured a more favorable deal than the EU.

Regarding India’s tariff and non-tariff reductions impacting trade, she added, “Trump’s statements are becoming less specific, merely indicating that India ‘will move’ towards zero percent”.

Nevertheless, based on Trump’s announcement on Truth Social, it appears that the US achieved broader and deeper tariff reductions than what the EU managed in its recently signed FTA with Delhi.

While tariffs on certain EU exports, such as electronics and machinery, will gradually be eliminated, others, like alcoholic beverages, will be lowered to 20%.

Trump stated on Truth Social that India will “move forward to lower their Tariffs and Non-Tariff Barriers against the United States, to ZERO.”

Overall, Cutler remarked that the India-US agreement “will pave the way for the two countries to collaborate on other urgent issues related to critical minerals, technology partnerships, and supply chain resilience.”

External Affairs Minister S Jaishankar arrived in New York on Monday as part of his visit to Washington for the Critical Minerals Ministerial convened by US Secretary of State Marco Rubio.