India and the US are reportedly “very close” to finalizing a framework trade deal intended to reverse reciprocal and penalty tariffs. Commerce Secretary Rajesh Agrawal stated that both nations are moving toward closure in their parallel negotiations—one for this framework deal and another for a comprehensive Bilateral Trade Agreement (BTA). The framework pact is expected to be completed in a short period.
The US Deputy Trade Representative, Rick Switzer, visited India last week to review progress and take stock of bilateral trade relations. These talks are particularly critical as the US has imposed 50% tariffs on Indian goods, citing concerns over the trade deficit and India’s purchase of Russian crude. India maintains that resolving these high tariffs is the key to firming up the trade pact.
Negotiations involve delicate concessions: the US is seeking access to Indian agricultural markets for products like almonds and apples. India has strongly opposed concessions in the dairy and agriculture sectors to protect the interests of its farmers and MSMEs. The successful conclusion of this deal is also expected to positively influence the Indian rupee, which recently breached the 90-to-a-dollar mark.