India-US Trade Deal: Visas, Services Still Unresolved

An interim trade agreement has been reached between India and the United States, presenting a mixed bag of outcomes. While the deal provides some tariff relief and opens trade avenues, significant concerns persist regarding work visas and the services sector, impacting millions of Indian workers. This agreement, described as a partial step, leaves certain tariffs at their current 25% rate, with further adjustments anticipated later. The framework for enhanced trade ties is established, but specific details require further clarification before a final pact is solidified.

The agreement notably omits discussions on services and visas, which are crucial for many Indians employed abroad. The restrictive nature of visas like the H1-B, which ties individuals to specific employers, has been highlighted as a point of contention. Additionally, the deal addresses US industrial goods, with India expected to reduce tariffs, while agriculture sees some progress, protecting key domestic interests. Wine and spirits imports are also set to be affected.

Digital trade is expected to remain stable, ensuring no adverse actions on remittances or digital transactions. India has committed to increasing its imports from the US by $500 billion over the next five years, encompassing purchases of aircraft, GPUs, and coking coal. Concurrently, Indian exports to the US could reach $700 billion in the same period, potentially balancing trade. The deal also does not encompass Russian oil imports, which are expected to continue independently.