India Aims to Finalize Trade Pact with US by Autumn
India Aims to Finalize Trade Pact with U.S. by Autumn 2025
India is actively working towards concluding the initial phase of a bilateral trade agreement with the United States by autumn 2025. This initiative aims to address existing trade imbalances and enhance economic cooperation between the two nations.
Trade Negotiations and Tariff Concerns
The negotiations have gained momentum following the U.S. imposition of a 27% tariff on Indian imports, prompting India to seek a resolution through diplomatic channels. In response, India has expressed its commitment to reducing tariffs on over half of its $41.8 billion worth of imports from the U.S. in 2024, signaling a strong willingness to enhance trade relations. Additionally, India is considering eliminating import taxes on U.S. ethane and liquefied petroleum gas (LPG) as part of broader trade negotiations, aiming to reduce its trade surplus and tariff burden.
High-Level Engagements and Strategic Discussions
Finance Minister Nirmala Sitharaman's visit to the U.S. has been pivotal in advancing these discussions. During her five-day visit, she is set to participate in the IMF and World Bank spring meetings, as well as the G20 finance ministers' summit. She is also scheduled to meet U.S. Treasury Secretary Scott Bessent and officials from the U.S. Trade Representative’s office to further the trade agenda. Simultaneously, U.S. Vice President JD Vance is in India for a four-day visit, where he will meet with Prime Minister Narendra Modi to discuss bilateral trade and defense cooperation.Reuters
Economic Objectives and Future Prospects
The overarching goal of these negotiations is to achieve $500 billion in bilateral trade by 2030. Both nations are optimistic about the potential of this trade agreement to bolster economic ties and address mutual concerns. The successful conclusion of this agreement would not only enhance trade relations but also contribute to regional economic stability and growth.