India and US to begin trade talks
Today, India trade minister Piyush Goyal and bilateral trade negotiator Rajesh Agrawal will begin trade negotiations with the Trump administration.
Since Washington announced a 90-day pause on the 26% tariff on India, New Delhi has raced to negotiate a trade deal with the United States. Despite being India’s largest trade partner, the United States remains at a trade deficit of $45.7 billion, while India currently faces an across-the-board 10% tariff. During Indian Prime Minister Narendra Modi’s visit to the White House in February, both parties committed to reaching an agreement by this fall and increasing bilateral trade to $500 billion by 2030. Notably, President Trump has already announced that India has offered a deal to eliminate all tariffs on US imports.
Given New Delhi’s 90-day deadline, a trade deal on negotiated tariffs will likely be agreed upon by the end of the pause. However, Trump’s frustration with Apple moving its production from the United States to India may be a point of contention. More importantly, any expectations regarding tariff rates and other terms of the deal remain premature, as New Delhi has not yet explicitly corroborated Trump’s claim. With the Indian delegation adamant about the agreement being mutually beneficial for both parties, the proposition of zero tariffs on US imports is unlikely. India and the United States will most likely become crucial trade partners in the coming years, assuming New Delhi’s trade delegation can negotiate mutually beneficial deal for both parties.
