Indian Commerce Minister Piyush Goyal highlighted significant advancements in trade discussions with the US, signaling hopeful future agreements.
Progress Made in US-India Trade Deal Talks, Says Indian Minister
Progress Made in US-India Trade Deal Talks, Says Indian Minister
India's Minister of Commerce expresses optimism on trade negotiations with the US after recent agreements.
India continues to make headway in its trade negotiations with the United States, according to Commerce Minister Piyush Goyal, who made these remarks in London following the signing of a significant free trade agreement with the UK. The minister's positive outlook comes amidst challenges, as both Washington and New Delhi have missed multiple deadlines to finalize a deal.
US President Donald Trump previously set a deadline of August 1 for countries, including India, to agree on a trade deal or risk facing increased tariffs. Initially announced in April, a 26% tariff on Indian goods was delayed until July 9 and then extended to August 1.
In light of ongoing discussions, Indian delegations have made various visits to the US to work out the deal's specifics. President Trump recently conveyed optimism, stating that the US and India were "very close" to reaching an interim trade agreement, with both nations aiming for a bilateral deal by year-end.
Speaking to Reuters, Goyal expressed confidence in the negotiations, stating, "I do hope we'll be able to conclude a very consequential partnership." While addressing concerns related to lower tariffs on agriculture and dairy products, he noted that "negotiations happen in the negotiation room" but hinted at the possibility of a more extensive agreement should smaller deals materialize in the interim.
Despite the optimistic tone, the resolution of crucial issues that have hindered progress remains uncertain. The US has long sought increased access to India's agricultural market, which they view as a significant opportunity. However, India has remained protective of its agriculture sector, citing the need to ensure food security and safeguard the livelihoods of small farmers.
Historically, the US has been India's largest trading partner, with the bilateral trade amounting to $190 billion. Both leaders, Trump and Modi, have envisioned the ambitious goal of boosting this figure to $500 billion. India has already made concessions, reducing tariffs on items such as Bourbon whiskey and motorcycles, although the US still faces a $45 billion trade deficit with India—an issue Trump aims to address.
