India-US Trade Deal in Final Stages; Hopes Rest on Tariff Concessions
New Delhi: The proposed trade agreement between India and the United States appears to be reaching its final stages. However, its success will depend largely on the relief India receives regarding the US's Section 301 investigation and the potential tariff measures associated with it. This information was provided by a source within the Indian government on Monday.
A US delegation, led by Brendan Lynch—the US Assistant Trade Representative for South and Central Asian Affairs—will hold three days of talks with Indian officials in New Delhi starting Tuesday. During these discussions, both sides will address pending issues related to the trade agreement.
India and the US had reached an agreement on a preliminary trade deal in February; however, the pace of negotiations subsequently slowed down due to tariff measures imposed by US President Donald Trump and related legal developments. Following this, the US administration initiated an investigation into the trade policies of several countries—including India—under Section 301 of the Trade Act of 1974, and subsequently imposed a uniform tariff of 10 percent.
According to the Indian source, New Delhi intends to discuss the potential tariff implications arising from this investigation and seek relief. India's objective is to secure competitive tariff rates that would provide it with an edge over other Asian manufacturing hubs.
The source stated that if the proposed terms are fair, balanced, and aligned with the interests of both parties, the agreement could be finalized. India is hopeful that it will secure a more favorable tariff regime compared to regional competitors such as Bangladesh, Pakistan, and Sri Lanka.
According to sources, US Deputy Trade Representative Jamieson Greer may visit India once the framework of the agreement has been established. This is being viewed as a sign of the growing progress between the two nations.
Last week, US Ambassador to India Sergio Gor stated that a trade agreement between the two countries is likely to be concluded within the coming weeks or months.
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