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US-India Trade Deal Imminent: Tariffs Set for Reduction
24 Nov
Summary
- US and India are nearing a crucial interim trade agreement soon.
- Deal aims to reduce existing US tariffs on Indian goods significantly.
- India reduced Russian oil imports to facilitate the trade pact.
The United States and India are reportedly in the final stages of concluding an interim trade agreement, with top officials signaling a forthcoming announcement. President Donald Trump expressed confidence in reaching a "fair trade deal" that would eventually lower existing tariffs. This development signifies a potentially transformative shift in bilateral economic relations, aiming to establish a foundation for broader trade discussions and strengthen ties between the two democracies.
Central to the negotiations is the resolution of US tariffs on Indian goods, which currently stand at 50%. Reports suggest these tariffs could be reduced to between 12% and 19%. India's recent decision to significantly decrease oil imports from Russia is seen as a crucial concession to advance these trade talks, demonstrating a pragmatic approach to balancing energy security with diplomatic objectives.
The initial agreement is poised to boost market access for Indian products, potentially increasing exports in sectors like textiles by up to 25%. The long-term objective is to double bilateral trade to $500 billion by 2030. Progress hinges on the US rollback of tariffs related to India's past Russian oil purchases, while India may reciprocate with increased purchases of US agricultural and energy products, alongside military equipment.
