India and the United States are likely to finalize an interim trade agreement by June 25, according to sources familiar with the matter. In light of the positive momentum, a delegation of U.S. officials is expected to visit India next month to advance discussions.
Talks are reportedly progressing well, with both sides working to get negotiations back on track. India’s chief negotiator and Special Secretary in the Department of Commerce, Rajesh Agarwal, recently wrapped up a four-day visit to Washington, where he met with American counterparts to discuss the proposed deal."Additionally, Commerce and Industry Minister Piyush Goyal visited Washington last week, where he held two meetings with U.S. officials." Commerce Secretary Howard Lutnick to advance the ongoing dialogue.
The two countries are aiming to finalize this interim agreement as a precursor to the first phase of a larger Bilateral Trade Agreement (BTA). Earlier this year, on April 2, the U.S. imposed a 26% reciprocal tariff on Indian goods, which is currently suspended until July 9. However, a 10% base tariff is still in effect, and India is pushing for a complete exemption from the 26% tariff as part of the interim agreement.
Both nations have set a goal to complete the first phase of the BTA by September–October. For the fiscal year 2024–25, the U.S. retained its position as India’s top trading partner for the fourth consecutive year, with bilateral trade reaching USD 131.84 billion. It accounted for around 18% of India’s goods exports, 6.22% of its imports, and 10.73% of the country’s total goods trade.
The interim agreement is expected to not only reinforce trade ties but also serve as a stepping stone toward a broader and more comprehensive trade pact in the near future.
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