Is India Close to Finalizing an Interim Trade Deal with the US?
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Synopsis
India is on the verge of sealing an interim trade agreement with the US to reduce tariffs, according to Commerce Secretary Rajesh Agrawal. The talks have progressed significantly, with expectations high for a deal that could reshape trade relations between the two nations. Stay tuned for the latest updates on this developing story.
Key Takeaways
- India is nearing an interim trade deal with the US.
- Six rounds of discussions have taken place.
- Concerns about rice 'dumping' have been addressed by Indian officials.
- India is implementing measures to mitigate US tariffs.
- Aiming for $100 billion trade with Russia by 2030.
New Delhi, Dec 15 (NationPress) Commerce Secretary Rajesh Agrawal stated on Monday that India is “extremely close” to finalizing an interim trade agreement with the US aimed at reducing tariffs, although he refrained from providing a specific timeline for this development.
“We are nearing the conclusion of the initial framework agreement, but I prefer not to set a deadline,” the Commerce Secretary informed reporters.
“We have conducted six rounds of discussions with the US, covering both the Bilateral Trade Agreement (BTA) and an interim arrangement to decrease reciprocal tariffs. There is a strong expectation that both nations will reach an agreement to lower these tariffs,” he added.
Agrawal mentioned that the recent visit from the Deputy USTR was aimed at assessing the current state of trade relations and evaluating progress on the BTA as well as the framework deal.
US Trade Representative (USTR) Jamieson Greer also remarked recently that the US has received the “most favorable offers from India” concerning the proposed trade agreement.
During a Senate Appropriations Subcommittee hearing in Washington, Greer noted that there is some resistance in India regarding the import of specific row crops, such as corn, soybean, wheat, and cotton from the US.
In response to allegations from American officials regarding India “dumping” rice in the US, Agrawal clarified, “Over 80 percent of our rice exports to the US consist of Basmati rice, which commands a higher price than general rice. Therefore, there is no basis for claims of dumping. We currently impose a 50 percent tariff on rice, so I do not foresee any additional duties on rice at this time.”
Last week, Prime Minister Narendra Modi and US President Donald Trump engaged in a telephone conversation following the visit of a high-level US official delegation to Delhi for trade discussions.
Meanwhile, the Indian government has implemented several measures, including reductions in GST rates, a promotional package aimed at diversifying export markets, and labor reforms to mitigate the effects of punitive tariffs imposed by the US on Indian exports.
India is also actively pursuing the diversification of its export markets. In line with this strategy, the government is exploring up to 300 products, including engineering goods, pharmaceuticals, agriculture, and chemicals, intended for export to Russia, with both nations targeting a trade volume of $100 billion by 2030.
Point of View
It's crucial to recognize the significance of the ongoing trade discussions between India and the US. The potential interim deal not only highlights India's readiness to adapt to global economic challenges but also signifies a commitment to strengthening bilateral relations. The government's proactive measures in labor reforms and export diversification reflect a strategic approach to bolster the economy amidst external pressures. We stand by the nation's interests in pursuing fruitful trade relationships.
NationPress
15/12/2025
Frequently Asked Questions
What is the status of the trade deal between India and the US?
India is very close to finalizing an interim trade deal with the US to lower tariffs, although no specific timeline has been set.
What topics have been discussed in the trade talks?
Discussions have covered the Bilateral Trade Agreement (BTA) and an interim deal to lower reciprocal tariffs.
What concerns have been raised about Indian rice exports?
There are allegations from US officials regarding 'dumping' of rice, but Indian officials clarify that the majority of rice exports are Basmati, which is priced higher than general rice.
What measures has India taken to address US tariffs?
The Indian government has implemented GST rate cuts, labor reforms, and promotional packages to diversify export markets.
What are India's export diversification plans?
India is looking to diversify its export market with up to 300 products, targeting a trade volume of $100 billion with Russia by 2030.
