India-US Trade Pact Poised for Significant Progress

India and the US are set to finalize the first tranche of a bilateral trade agreement, which will see US tariffs on Indian goods reduced to 18%. The agreement is expected to be signed in March, with no investment commitments involved.

In a notable development, India and the United States are gearing up to finalize and sign the first phase of a bilateral trade agreement, as announced by Commerce and Industry Minister Piyush Goyal. The joint statement is anticipated within the next four to five days.

This pivotal step will lead to the reduction of US tariffs on Indian goods from the current 25% to 18%, marking a significant relief for Indian exporters. Currently, Indian products attract a 25% reciprocal tariff, along with an additional 25% due to purchases of Russian crude oil.

According to Commerce Secretary Rajesh Agrawal, a comprehensive legal agreement is expected to be signed by mid-March, building on the joint statement. This agreement will see India reduce tariffs on specific US goods while confirming the absence of any investment obligations in the pact.

(With inputs from agencies.)