India–US Set to Seal First Tranche of Trade Deal
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The first phase of the proposed India-US bilateral trade agreement (BTA) is 'nearing closure' and is anticipated to address the hefty 50 percent tariffs imposed by the Trump administration on Indian goods, in addition to resolving the US’ market access issues, according to reports.
The US has imposed a 25 percent reciprocal tariff and another 25 percent on Indian goods entering the US markets for buying Russian crude oil.
Reports indicate that the deal is expected to address the issue of a 25 percent penalty on India; otherwise, the agreement may not have meaning.
Additionally, the reports claim that the BTA has multiple packages or tranches, and this will be the first tranche to address the tariffs. The deal will be announced on a mutually agreed date.
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India and the US are negotiating a bilateral trade agreement, with up to six rounds of talks being completed. Both sides have announced plans to finalize the first tranche of the deal by the fall of 2025.
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The US remains India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion ($86.5 billion exports). It accounts for about 18 percent of India's total goods exports, 6.22 percent in imports, and 10.73 percent in the country's total merchandise trade.
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India's merchandise exports to the US declined 11.93 percent to $5.46 billion in September due to the high tariffs imposed by Washington, while imports increased 11.78 percent to $ 3.98 billion during the month, according to commerce ministry data.