India ‘very close’ to US trade deal, says Piyush Goyal | Today’s news
India and the United States are on the verge of finalizing a trade deal, Indian Commerce and Industry Minister Piyush Goyal said in London on Thursday.
New Delhi wants to make sure it has a competitive edge over its counterparts and cannot enter into a deal until that framework is finalized, he said, as reported by Reuters.
As Bloomberg reports, the United States and India concluded a round of trade talks this week, although neither country has disclosed whether key differences that have held up an interim deal have been resolved.
The US and India have concluded their latest trade talks
US Trade Representative Jamieson Greer visited India for two days of talks that ended on Wednesday as both sides sought to move forward trade talks that have been ongoing for several months.
The visit followed a meeting between US President Donald Trump and Indian Prime Minister Narendra Modi on the sidelines of the Group of Seven summit, where Trump said the two countries were “very close” to reaching an agreement.
Read also | India, US make ‘significant progress’ in trade pact talks, push for interim deal
“We reviewed the progress of the ongoing trade discussions between India and the US and explored ways to further deepen our economic partnership,” India’s Commerce and Industry Minister Piyush Goyal said on Wednesday after meeting with Greer.
In a separate statement, India’s commerce ministry said the two sides were seeking a “balanced” deal that would bring “tangible benefits to businesses, farmers, workers and consumers in both countries.” In the latest round of talks, officials discussed better market access, digital trade, supply chain resilience and reducing non-tariff barriers, according to the statement, as reported by Bloomberg.
The talks highlight the growing importance of economic ties between the world’s largest and most populous democracies. The United States is India’s second largest trading partner and its largest export destination.
Read also | Piyush Goyal to visit UK from June 25-27 to finalize India-UK trade deal
The trade deal could help shield Indian exporters from the risk of higher US tariffs while boosting Prime Minister Narendra Modi’s efforts to make India a global manufacturing hub. Such a deal would give Washington greater access to one of the world’s fastest-growing major economies and support its strategy of reducing its supply chain’s dependence on China.
India’s exports to the United States rose to $87.3 billion in the financial year ended March, while imports from the US rose 17.2% to $53.48 billion.
In February, India and the US unveiled a trade framework that cut tariffs on Indian goods to 18% from 50%. But days later, the US Supreme Court invalidated President Donald Trump’s sweeping global tariff policy, raising new uncertainty over the deal’s implementation timeline.
Here’s what experts at the Asia Society Policy Institute have to say
Wendy Cutler, senior vice president of the Asia Policy Society (ASPI), told ANI that “Despite significant progress made in recent meetings, a trade deal with India is proving illusive.”
She added: “Each side has its own priorities and redlines, which continue to prevent a successful conclusion. Moreover, developments over the past year have created a serious trust deficit on the Delhi side, which complicates wrapping things up.”
According to Cutler, India is seeking more clarity on tariff measures before finalizing any deal. She said: “India very much wants a preferential tariff advantage over its competitors, so it is in no rush to conclude until there is more clarity on tariff rates and product exclusions. Moreover, it is seeking assurances from Washington that there will be no further tariff hikes, which is most likely a long way for the Trump team.”
Read also | Trump says the US and India are “very close” to a trade deal and calls Modi a “tough negotiator”.
Farwa Aamer, director of South Asia initiatives at ASPI, said the continued engagement of the two governments points to the possibility of an agreement, even if challenges remain.
She said: “Sustained efforts from both sides show promise towards a deal, but not without a fair amount of slowdown and lingering uncertainty.”
She noted that broader geopolitical factors influenced the negotiations. She added: “Wider geopolitical differences between Delhi and Washington have also affected the way at least India is coming to the negotiating table, cooperative but more assertive. There is also a lot of domestic pressure on the Indian leadership to ensure a balanced and fair deal to make this possible.”
(With input from agencies)
