India and the United States are close to a breakthrough in trade deals, with both countries hinting at optimism and urgency. US President Donald Trump on Tuesday stated that the discussions were advancing well, stating, ”I think we’ll have the deal with India,” as quoted by CNBC. While speaking to the reporters outside the White House, he added, ”The prime minister, as you know, was here three weeks ago, and they want to make a deal.
India is likely to be the first country to make deal with the US
US Treasury Secretary Scott Bessent mentioned that Washington is ”very close to India” and indicated that announcements could be made soon. As per Bessent, ‘’A country like India, which has posted and ready tariffs, it’s much easier to negotiate with them.’’ Bessent added that India is likely to be the first countries to finalise the trade deal with the US. ”I would guess that India would be one of the first trade deals we would sign. So watch this space,” Mr. Bessent added, as quoted by CNBC.
In a notable development, India is offering US a ”forward most-favoured-nation” clause. Under this initiative, an unusual provision that will guarantee the US better trade norms India may grant to future partners. According to Reuters report, a senior official described it as way to ”future-proof the US deal,” adding that such a clause has rarely been used in earlier trade deals.
India also already extended crucial concessions to Washington. It has surpassed more than what has been offered to other major countries like China and the EU. As per government sources, New Delhi is ready to set lower tariffs of up to 90% on goods immediately. The list will include a deduction of 0-5% on US agricultural exports like meat, fruit juices, and fish. As per the current status, these items have duties of up to 100%.
(With inputs from Reuters)