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India-US Trade Deal First Tranche Nears Signing, Tariff Relief Expected

The first segment of an India-US trade deal is close to being finalized, which is expected to address high US tariffs on Indian exports. Commerce Secretary Rajesh Agrawal stated that negotiating teams are in continuous talks following a recent virtual meeting between the commerce ministers. US Ambassador Sergio Gor emphasized the strong personal relationship between the leaders of both nations as a foundation for resolving trade differences. Additionally, Ambassador Gor announced that India will be invited next month to join the US-led PaxSilica initiative for a secure silicon supply chain.

Key Points: India-US Trade Deal Close, Aims to Lower Tariffs

  • First tranche of trade deal nearing completion
  • Aims to lower US punitive tariffs on Indian goods
  • Negotiating teams in continuous talks
  • India to be invited to join PaxSilica initiative
2 min read

First tranche of India-US trade deal to be signed soon: Commerce Secretary

Commerce Secretary says first part of India-US trade pact is being finalized, could reduce punitive US tariffs on Indian exports. Negotiations ongoing.

"Real friends can disagree, but always resolve their differences in the end. - US Ambassador Sergio Gor"

New Delhi, Jan 15

The first tranche of the India-US trade deal, which is expected to result in lowering of the tariff hike imposed by the US administration on Indian exports, is close to being finalised, though no timeline can be committed, Commerce Secretary Rajesh Agrawal said on Thursday.

There was a virtual meeting between India's commerce minister Piyush Goyal and the US Trade Representative (USTR) Jamieson Greer in the last week of December and negotiating teams on both sides are in continuous talks to arrive at a consensus, Agrawal said.

The US has imposed a punitive tariff of 50 per cent on most Indian goods, which is among the highest in the world.

India hopes that exports to the US will remain in positive territory. Electronics shipments, which are currently tariff-free, have been a key driver so far, even as higher duties continue to impact other sectors, the Commerce Secretary explained.

Both sides remain engaged and committed to securing a deal, Agrawal said.

Meanwhile, the newly-appointed US Ambassador in New Delhi, Sergio Gor, said earlier this week that India and the US continue to be actively engaged in trade talks.

Gor said that President Trump conveyed "his best wishes to his friend Prime Minister Narendra Modi."

"The friendship between Mr. Trump and Mr. Modi is real and the U.S. and India are bound not just by shared interests, but by a relationship anchored at the highest levels. Real friends can disagree, but always resolve their differences in the end," Gor remarked.

He also stated that while trade is very important for India-US ties, the two countries will continue to work closely together on other very important areas, such as security, counter-terrorism, energy, technology, education, and health.

Gor also announced that India will be invited to join PaxSilica as a full member next month. He explained that PaxSilica is a new initiative that the United States launched just last month to build a secure, prosperous, and innovation-driven silicon supply chain from critical minerals and energy inputs to advanced manufacturing, semiconductors, AI development, and logistics.

"Nations that joined last month include Japan, South Korea, the United Kingdom, and Israel. India's inclusion would further strengthen the group," he added.

- IANS

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Reader Comments

P
Priya S
Good news, but I hope our negotiators are driving a hard bargain. We shouldn't compromise on our interests just for a 'friendship' narrative. The 50% tariff was unfair to begin with.
R
Rohit P
Invitation to join PaxSilica is the bigger story here! Being part of this silicon supply chain initiative with Japan, Korea, UK is huge for our tech and semiconductor ambitions. Make in India gets a global boost. 🚀
S
Sarah B
While the trade deal is important, I'm glad Ambassador Gor highlighted the broader partnership—security, counter-terrorism, health. That's the real strength of the relationship. The trade issues are just one piece.
V
Vikram M
"No timeline can be committed" – this phrase worries me. We've heard "soon" for years now. Our businesses need certainty. Hope this virtual meeting leads to concrete action, not just more talks.
K
Kavya N
Electronics doing well is good, but what about agriculture and handicrafts? Those sectors employ millions and have been hit hard by the tariffs. The deal must have something for them too. Jai Kisan.

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