Latest in the India-US trade deal: A team of Indian officials will visit the US next week to finalise the legal text for an interim trade agreement, which is expected to be signed in March, Commerce Secretary Rajesh Agrawal said, according to PTI.
According to PTI, the visit is likely to start from February 23.
According to another report by Reuters, Indian trade officials are expecting the US to reduce tariffs on India to 18% from 50% from this week.
India, US begin talks to convert interim trade pact into legal agreement
India and the US had earlier this month released a joint statement announcing the interim trade deal framework.
“The joint statement lays down the contours of the deal. Now the contours of the deal have to be translated into a legal agreement, which will be signed between the two sides,” Commerce Secretary said, according to PTI.
Both sides are engaged in finalising that legal agreement, and virtual talks are going on.
“Next week (India’s) chief negotiator Darpan Jain will be leading a delegation to the US to finalise the legal trade agreement,” Agrawal said, according to PTI.
Tariffs cut to 18%, India to buy $500 bn US goods
According to the recent agreement between the two countries, the US had decided to remove 25% additional tariff imposed on India as a punishment for purchasing Russian oil. India on the other hand said it intends to buy $500 billion of US goods over five years
The reciprocal tariff is expected to reduced to 18%. Analyst expects this reduction in tariff to give India a competitive edge among its Asian peers who are still facing higher tariffs like China.
Jefferies expects India’s annual trade surplus with the US to exceed $90 billion, and exports to the US market may rise by over $100 billion if the reduced tariff takes effect.
Bilateral trade between India and the US was $132 billion in 2024-25, with a roughly $41 billion surplus in India’s favour.