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India Denies Reports of Holding Off US Trade Deal as "Incorrect, Misleading"

Indian government sources have firmly dismissed recent reports suggesting the country would hold off on a trade deal with the United States, labeling the claims as incorrect and misleading. The two nations recently announced a framework for an interim trade agreement, building on a broader pact launched earlier this year. Under this framework, India will eliminate or reduce tariffs on various US products, while the US will impose an 18% reciprocal tariff on certain Indian goods. Additionally, India intends to purchase $500 billion worth of US energy products, aircraft, and other goods over the next five years.

Key Points: India Denies Reports of Delaying US Trade Deal

  • Govt dismisses reports of delaying deal
  • New trade framework announced last month
  • India to cut tariffs on US goods
  • US to impose 18% reciprocal tariff
  • India plans $500B US energy, aircraft purchases
2 min read

Claim that India will hold off trade deal with US is incorrect, misleading: Govt sources

Indian govt sources dismiss claims of holding off on a US trade deal as "incorrect and misleading," detailing the new trade framework.

"The claim that India will hold off a trade deal with the United States is incorrect and misleading - Government sources"

New Delhi, March 13

Reports suggesting that India would hold off on a trade deal with the United States were dismissed on Friday by Government of India sources.

The Government of India sources said that the claims made were "incorrect and misleading".

"The claim that India will hold off a trade deal with the United States is incorrect and misleading," sources said.

The United States and India last month announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025

As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US has said it will later remove reciprocal tariffs on select items, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

Meanwhile, in the last week of February, sources in the Commerce Ministry said that the proposed meeting of the chief negotiators of India and the US in Washington, DC, for finalising discussions on the proposed India-US trade deal will be rescheduled.

"The two sides are of the view that the proposed visit of the Indian Chief Negotiator and the team should be scheduled after each side has had the time to evaluate the latest developments and their implications. The meeting will be rescheduled at a mutually convenient date," sources in the Commerce Ministry said.

- ANI

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Reader Comments

P
Priyanka N
I'm a bit concerned about the 18% reciprocal tariff on our textiles and leather goods. That's a huge sector for employment, especially in smaller towns. The government must ensure adequate support for these industries if the deal goes through.
A
Aman W
The rescheduling of the negotiators' meeting seems like a practical step. Both sides need to evaluate properly. Rushing into such a major agreement wouldn't be wise. Better to get it right than to get it fast.
S
Sarah B
Interesting to see the details. Eliminating tariffs on US industrial goods and agricultural products like nuts and fruits could benefit consumers with more choices and maybe lower prices. Hope the benefits are two-way.
V
Vikram M
With all due respect to the government sources, there seems to be a pattern of announcements followed by clarifications. A little more transparency in the negotiation process itself would prevent such "misleading" reports from gaining traction in the first place.
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Karthik V
The commitment to buy US energy products and aircraft is a strategic move. It strengthens the partnership beyond just trade. This deal seems to be about geopolitics as much as economics, which is smart diplomacy.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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