India And the US may agree on the interim trade agreement by 25 June. Sources have given this information. A team of American officials is coming to India next month for trade talks. Sources said that the conversation is moving in the right direction. Rajesh Aggarwal, the chief negotiator of India and Special Secretary in the Department of Commerce, completed his four -day Washington Yatra last week. He interacted with his American counterpart on the proposed agreement.
Tariff is stopping on 9 July
The two sides want to establish an interim consensus on the proposed bilateral trade agreement (BTA) before the US ends on July 9 on the 26 per cent tariff imposed on India. On April 2, the US imposed a 26 per cent recipe tariff on India, but postponed it till July 9. However, 10 per cent of the original tariff imposed by the US on Indian goods is still applicable. In the interim trade agreement, India is pressurizing domestic goods to give full exemption from 26 per cent of counter duty.
America expressed concern over trade deficit
The two countries have set a deadline for September-October of this year to complete the first phase of the proposed BTA. The US remains India’s largest trading partner in the fourth financial year 2024-25. Bilateral trade between the two countries stood at US $ 131.84 billion. The US accounts for about 18 percent of India’s total goods exports. At the same time, 6.22 percent stake in imports and 10.73 percent in the total goods trade in the country. India’s trade surplus (difference between import and export) in terms of goods in 2024–25 with the US was US $ 41.18 billion. It was US $ 35.32 billion in 2023-24, US $ 27.7 billion in 2022-23, US $ 32.85 billion in 2021-22 and US $ 22.73 billion in 2020-21. The US has expressed concern over this growing trade deficit. The target of both trading partners aims to increase bilateral trade from doubled to US $ 500 billion by 2030.
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