Lagatar24 Desk
New Delhi: India and the United States have finalised the terms of reference for the first phase of their bilateral trade agreement talks, according to a Reuters report citing an anonymous official. The development comes amid a 90-day pause on the new tariffs announced by US President Donald Trump.
Trade Deal Expected In 90 Days
The trade official stated that the deal could be finalised within the next 90 days and described it as having a “win-win shape and form” for both countries. “We are far ahead in trade talks with the US compared to other countries… there are lots of possibilities in 90 days,” the official added.
India is the US’s largest trading partner, with two-way trade exceeding $118 billion in the financial year 2023-24.
Tariff Pause And Negotiations
Last week, the Trump administration announced a 26% tariff on Indian products. However, India did not impose any retaliatory tariffs. The US President then offered a 90-day pause on these tariffs for certain countries, including India, to allow for negotiations of favourable trade deals.
Engagements between India and the US will continue virtually and regularly during this period, officials said.
India Moves Quickly In Talks
The Indian government has moved swiftly to enter into negotiations with the US, reiterating its stance that the common economic rival remains China. Union Commerce Minister Piyush Goyal recently pointed out that manufacturers in both India and the US have faced unfair trade practices from China over the years.
An official told Reuters, “India is one of the first nations to start talks over a deal with the United States and to have jointly agreed to a deadline to conclude it.”
Customs Monitoring And Export Checks
In light of the ongoing negotiations, Indian customs have been alerted to monitor exports and imports closely to prevent any extraordinary surge. “India should not be used as a re-routing destination,” an official told PTI.
Targeting $500 Billion Trade By 2030
In February, India and the US agreed to work on the first phase of the trade deal with the goal of reaching a bilateral trade volume of $500 billion by 2030.
Trump’s Statement On Tariffs
While announcing the tariffs, President Trump said, “Their Prime Minister [Narendra Modi] just left [US recently]. He is a great friend of mine, but I said to him that ‘you’re a friend of mine, but you’ve not been treating us right’. India charges us 52 per cent, so we will charge them half of that – 26 per cent.”
