India-US Trade Deal Nears Closure: A Breakthrough in Bilateral Relations

The India-US bilateral trade agreement is close to resolving high tariffs imposed by the US on Indian goods. The first phase aims to manage reciprocal tariffs, addressing significant trade barriers. This agreement seeks to improve market access and bolster trade, potentially reaching USD 500 billion by 2030.

The first phase of the India-US bilateral trade agreement is on the brink of completion, promising to alleviate the significant 50 percent tariffs imposed on Indian goods by the Trump administration, as noted by a government official on Monday.

The negotiations, in progress for a significant period, aim to address the reciprocal tariffs between the two nations. India is responding to the US's 25 percent tariff on Indian goods entering American markets, a consequence of purchasing Russian crude oil. This agreement represents an initial step toward resolving these trade disparities.

Plans are underway to finalize the deal by fall 2025, with the ultimate goal of expanding bilateral trade from the current USD 191 billion to USD 500 billion by 2030. This move aims to strengthen economic ties and market access for both countries, potentially impacting future international trade dynamics positively.

(With inputs from agencies.)