US-India Trade Deal: Renewed Optimism for a Long-Overdue Agreement

US-India Business Council President Atul Keshap is optimistic about a forthcoming US-India bilateral trade agreement, despite ongoing negotiations and market access concerns. The proposed deal includes a 12.5% tariff on Indian goods due to forced labor issues, but both nations see promise in reaching a consensus soon.

US-India Business Council President Atul Keshap has expressed renewed optimism that a long-overdue bilateral trade agreement between India and the US is on the horizon. He said that despite the challenges, he shares former President Donald Trump's confidence that such a deal could soon be finalized, underscoring its importance for investors.

Negotiations, led by US Trade Representative officials and Indian counterparts, lasted several days in Delhi. Keshap highlighted the urgency felt by both governments to conclude these talks, which are believed to drive trade value toward a $500 billion mark. He underscored this prospect as crucial given the current state of trade relations.

Integral to these negotiations is a 12.5% tariff proposed by Washington on Indian goods due to forced labor concerns. Keshap stressed that such complications are common in bilateral talks, which encompass market access, fairness for foreign investors, and regulatory issues. He remains hopeful these deliberations will lead to a robust agreement obviating tariffs.

Keshap praised the skill and resilience of Indian negotiators while acknowledging the current US administration's strategic approach to negotiations. He believes that reaching a compromise is key, with both countries having legitimate concerns to address.

Beyond the agreement, Keshap urged India to harness this momentum for broader reforms, including enhancing research and development, to become an attractive investment destination.