Commercial And Industry Minister Piyush Goyal held a second meeting with US Commerce Minister Howard Lutnik in Washington, USA on Friday and discussed the proposed bilateral trade agreement between the two countries. Goyal also held a meeting with Lutnik on 20 May to speed up talks on the first phase of the trade agreement. The minister wrote on the social media platform ‘X’, “I held a meaningful meeting with Commerce Minister Howard Lutnik for mutually beneficial trade agreement. We are committed to increase opportunities for our businesses and people. ”
Deal may be done by 8 July
This meeting is important because the two countries are considering finalizing the interim trade agreement by July 8. The four -day discussion between the chief negotiaters was also completed on 22 May in Washington. India is pressurizing Indian goods for full exemption from 26 per cent of Indian goods in the interim trade agreement. The US has suspended an additional 26 per cent tariff on India till 9 July. The increase in tariff rates was announced on April 2 to bridge the increasing trade deficit.
25% tariff on steel, aluminum and auto components
However, the original tariff of 10 per cent is applicable to all countries. Apart from this, 25 percent tariff is also imposed on steel, aluminum and auto components. The US administration currently requires approval from the US Congress to bring Tariff below the MFN (most preferred nation) rates. However, the administration has the right to remove the counter -tariffs imposed on several countries including India. India may consider some commitments from the US on the fee concessions for its labor-dominated region in the first phase of the proposed bilateral trade agreement (BTA).
Target of 500 billion dollars by 2030
The two countries have set a deadline to complete the first phase of the agreement by September-October this year to increase bilateral trade by 2030 to US $ 500 billion. In order to promote bilateral trade, India is demanding a fee concession for labor-dominated sectors like textile, gem and jewelery, leather items, apparel, plastic, chemicals, shrimp, oilseeds, chemicals, grapes and bananas in the proposed agreement with the United States. On the other hand, the US wants some industrial goods, motor vehicles (especially electric vehicles), wine, petrochemical products, milk and agricultural products such as apples, trees fall and GM (geneticly modified) in sectors such as sectors.
America expressed concern over trade deficit
The import of GM crops from the US is still closed due to regulatory criteria in India. However, there is approval for import of non-GM products such as alfalfa grass (one type of animal feed). The US remained India’s largest trading partner in the fourth financial year 2024-25. Bilateral trade between the two stood at US $ 131.84 billion. America’s stake in India’s total goods exports was around 18 percent, 6.22 percent in imports and 10.73 percent in the country’s total goods trade. 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.
Latest business news
