Is There a Surge of Enthusiasm in India for a Trade Pact with the US?
Click to start listening
Synopsis
India is buzzing with anticipation over a potential trade pact with the US, as Arvind Panagariya highlights its importance for boosting exports. With ongoing negotiations and a favorable global context, this agreement could redefine India's economic landscape. Will this be the breakthrough Indian businesses have been waiting for?
Key Takeaways
- High anticipation for a US trade agreement in India.
- Potential access to larger export markets for Indian businesses.
- Negotiations with the EU are ongoing.
- A favorable tariff situation could enhance competitiveness.
- Key leadership figures express strong interest in finalizing agreements.
New Delhi, July 26 (NationPress) There is substantial excitement and anticipation in India regarding the completion of a trade agreement with the US, which could provide Indian enterprises with access to an expanded export market, according to Arvind Panagariya, Chairman of the 16th Finance Commission.
Addressing an event in New York hosted by the CSIS Chair on India and Emerging Asia Economics, Panagariya emphasized that a trade agreement between India and the US could significantly enhance the nation’s global investment landscape.
"To serve the greater good, it is essential to liberalize the economy, especially in light of the current trade tariff situation. Engaging in trade agreements will enable access to larger markets for Indian exports," he shared with the audience during this week’s event, outlining his aspirations for a “Rising India”.
The recent increase in tariffs by the United States has altered the global trade dynamics.
"The sentiments I perceive indicate a high level of anticipation surrounding the US trade agreement. There is palpable enthusiasm not only for this deal but also for a future agreement with the European Union (EU)," he remarked.
Following the successful conclusion of the India-UK Free Trade Agreement (FTA), all eyes are now set on the trade pact with the EU. India and the EU have been engaged in FTA negotiations since June 2022, having completed 12 rounds, with the latest round in July 2025. The goal is to finalize the free trade agreement by the end of 2025.
Furthermore, a trade deal with the US featuring lower tariffs on labor-intensive Indian products compared to competitors would be a significant advantage and present a strong opportunity.
President Donald Trump has mentioned that the US is "very close" to finalizing a trade deal with India, which may be concluded shortly. This month, the Indian negotiating team, led by Rajesh Agrawal, the special secretary in the Commerce Department, visited Washington.
Panagariya stated, "I may not be part of the government currently, but there is a profound interest in finalizing trade agreements" with the US and other nations.
Point of View
It is crucial to recognize the significant interest in trade agreements between India and other countries. The enthusiasm shown by leaders like Arvind Panagariya indicates a strong desire for economic growth and global integration. Such agreements could greatly benefit the nation and fuel its development.
NationPress
26/07/2025
Frequently Asked Questions
What is the significance of the trade agreement with the US?
The trade agreement with the US is significant as it aims to provide Indian businesses with access to larger export markets, enhance global investment, and potentially reduce tariffs on key products.
How many rounds of negotiations have taken place between India and the EU?
India and the EU have completed 12 rounds of negotiations for a Free Trade Agreement since June 2022.
What has President Trump said about the trade deal with India?
President Trump indicated that the US is 'very close' to finalizing a trade deal with India, suggesting it may be wrapped up soon.
What advantages could a US trade deal provide for India?
A US trade deal with lower tariffs on labor-intensive Indian products compared to competitors could create significant advantages and opportunities for Indian businesses.
Who is leading the Indian negotiating team in the US?
The Indian negotiating team, led by Rajesh Agrawal, the special secretary in the Commerce Department, visited Washington to discuss the trade deal.
