India-US Trade Deal (Social media)
World News: The long-pending interim trade agreement between India and the United States is now believed to be almost finalized. According to sources, both countries have reached a consensus on nearly all terms, and the official announcement is expected by July 8. To finalize this agreement on behalf of India, Special Secretary in the Ministry of Commerce and Chief Negotiator Rajesh Agrawal is currently in Washington holding talks with US officials.
In April, US President Donald Trump announced an additional 26% import duty on exports from several countries, including India. However, this levy has been temporarily suspended until July 9. Given this timeline, finalizing the trade deal is crucial for India to shield its exporters from the heavy tariff burden.
Currently, a basic 10% duty is already levied by the US on Indian goods. Without this agreement, the total duty could rise to 36%, severely impacting the competitiveness of Indian products in the US market.
Under the proposed deal, both sides have agreed to offer concessions in several critical sectors. The US is seeking access to the Indian market for dairy products such as milk and cheese, agricultural goods like apples and almonds, as well as electric vehicles, industrial goods, and wines.
On the other hand, India has demanded duty exemptions on exports from its labor-intensive sectors, including textiles, gems and jewelry, leather goods, plastics, chemicals, seafood (especially shrimp), grapes, and bananas.
The dairy and agricultural sectors remain sensitive areas for India. The country has never fully opened its dairy sector in any of its Free Trade Agreements (FTAs), mainly due to concerns about the impact on local farmers and milk producers. Despite these challenges, sources suggest that both sides have reached a balanced compromise on the issue during the ongoing talks.
President Trump has recently hinted at a forthcoming trade deal with India. Speaking last week, he stated that his administration is aiming to remove all trade barriers and referred to existing restrictions as “incredible trade barriers” that he hopes to eliminate.
If the agreement is announced as expected on July 8, it could mark the beginning of a new phase in India-US economic relations. While India’s exporters would benefit from reduced tariffs and greater market access, American industries would find it easier to enter and operate in India’s vast and growing market.
All eyes are now on the final announcement—a deal that could reshape bilateral trade dynamics for years to come.
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