India-US: Setting the Stage for a New Trade Pact

India and the US are finalizing terms for a new bilateral trade agreement covering 19 chapters, including tariffs and customs facilitation. Talks aim to leverage a 90-day tariff pause to finalize an interim agreement. Discussions will address ambitions, with potential duty concessions on both sides.

In an effort to cement a new era of economic cooperation, India and the United States are on the cusp of finalizing the terms for a bilateral trade agreement. This proposed pact spans 19 chapters tackling issues like tariffs, non-tariff barriers, and customs facilitation, according to official sources.

An Indian delegation, led by Rajesh Agrawal, India's chief negotiator in the Department of Commerce, is set to visit Washington next week for preliminary talks. These discussions will be pivotal, aiming to iron out key differences within a 90-day tariff pause window, and set the stage for formal negotiations.

Both countries are intent on capitalizing on a tariff pause announced by President Trump to pave the way for a potential interim agreement. If successful, the deal could bridge the trade surplus gap and propel bilateral trade to USD 500 billion by 2030, more than doubling the current figures.

(With inputs from agencies.)