NEW DELHI: A high-level US trade delegation is expected to land in India in the coming weeks for what could be the final round of talks on the proposed interim trade agreement between the two countries, multiple sources said, reported PTI.
The visit comes with a ticking clock, with both sides aiming to seal the deal before July 9, when a temporary suspension on steep US tariffs runs out.
India is pushing hard for full exemption from the 26% reciprocal tariff the US imposed on April 2, currently suspended for 90 days. But while the countdown continues, Indian exports still face a 10% baseline tariff, and New Delhi is keen to get that lifted too.
“The US team is expected in India for trade talks. Negotiations are moving at a faster pace,” one official said, signaling urgency on both sides.
What’s been done so far?India’s chief negotiator Rajesh Agrawal, special secretary in the department of commerce, returned from a four-day visit to Washington last week. There, he held direct talks with his US counterpart on the contours of the interim deal.
Meanwhile, commerce and industry minister Piyush Goyal was also in Washington. In what’s being viewed as a diplomatic nudge, he met US Commerce Secretary Howard Lutnick twice during his stay, lending political weight to what was otherwise a trade-heavy week.
So what’s the hold-up?Under current US law, any move to lower tariffs below MFN (Most Favoured Nation) levels needs approval from US Congress. However, the US administration can remove reciprocal tariffs unilaterally, something that’s on the table not just for India but for other countries too.
Why it mattersThis is not just about lifting levies on mangoes and motorcycles. The US has been India’s top trading partner for four years straight, with bilateral trade at $131.84 billion in 2024–25. The US now accounts for 18% of India’s exports, 6.2% of its imports, and over 10% of its total trade.
The sticking point? A $41.18 billion goods trade surplus in India’s favor, up from $35.32 billion last year. Washington’s not thrilled. But Delhi is unfazed, focusing instead on securing tariff relief before the July cliff.
Both sides have already agreed to finalise Phase 1 of a broader bilateral trade deal by fall (September–October). The two trading partners look to more than double bilateral trade to USD 500 billion by 2030.
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