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Key Points

India and the United States are making significant progress in resolving their ongoing trade tariff disputes. Chief Economic Advisor V. Anantha Nageswaran has expressed optimism about finding a solution within the next 8-10 weeks. A US trade representative team recently visited India to discuss potential trade agreements. The negotiations signal a positive shift in bilateral economic relations between the two countries.

Key Points: Nageswaran Reveals India-US Trade Tariff Resolution Timeline

  • Bilateral trade talks intensifying between India and US
  • Potential reduction of tariffs from 25% to 15%
  • US trade representative team in India for negotiations
  • Positive momentum in resolving trade stalemate
2 min read

India-US tariff stalemate likely to be resolved in 8-10 weeks: Chief Economic Advisor

Chief Economic Advisor predicts India-US tariff resolution in 8-10 weeks, signaling potential breakthrough in bilateral trade negotiations

"My hunch is that in the next eight to 10 weeks, we will likely see a solution to the penal tariff - V. Anantha Nageswaran, Chief Economic Advisor"

Kolkata, Sep 18

In a ray of optimism for Indian exporters, Chief Economic Advisor (CEA) V. Anantha Nageswaran on Thursday said a solution to the India-US tariff issues is likely to be arrived in the next 8-10 weeks.

Addressing a session organised by the Bharat Chamber of Commerce here, Nageswaran said that conversations are already going on between the two governments to end the deadlock.

"My hunch is that in the next eight to 10 weeks, we will likely see a solution to the penal tariff imposed by the US on Indian goods," he told the gathering.

Nageswaran indicated that the India-US talks are underway to also reduce the reciprocal tariffs from 25 per cent to about 15 per cent.

The additional 25 per cent tariff on Indian imports came into effect from August 27 owing to New Delhi purchasing Russian oil -- taking the total tariffs on the Indian goods entering the US to 50 per cent.

On a question regarding the call between Prime Minister Narendra Modi and US President Donald Trump on PM Modi's 75th birthday, Nageswaran said he hoped the trade stalemate would be resolved soon.

"I think the conversations are going on, and as I said earlier, I hope that this will be resolved soon," he told IANS on the sidelines of the event.

Meanwhile, India and the US have decided to intensify efforts to achieve an early conclusion of a mutually beneficial trade agreement (BTA).

A team of officials from the office of the United States Trade Representative, led by Chief Negotiator, India-US Bilateral Trade Agreement negotiations, Brendan Lynch, arrived in India this week.

They held discussions on India-US trade ties, including the India-US Bilateral Trade Agreement, with a team of Indian officials, led by Special Secretary, Commerce, Rajesh Agrawal.

According to a statement issued by the Commerce and Industry Ministry, "Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward looking covering various aspects of the trade deal. It was decided to intensify efforts to achieve an early conclusion of a mutually beneficial Trade Agreement".

According to Commerce Ministry sources, trade discussions are going on at several levels. There is a positive frame of mind on both sides while approaching trade issues.

Lynch's visit came as expectations of a trade deal were boosted by positive messages from Trump and PM Modi.

- IANS

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Reader Comments

P
Priya S
This is why India needs to diversify its trade partners. We can't keep depending on the US market alone. Time to strengthen ties with other countries too!
A
Aryan P
Reducing from 25% to 15% would be a huge relief for our MSME sector. Many small businesses were struggling with these unfair tariffs. Good step forward!
S
Sarah B
As someone working in export business, this news brings hope. The last few months have been challenging with the additional tariffs. Fingers crossed! 🤞
V
Vikram M
While I appreciate the optimism, we've heard similar timelines before. The government should be more transparent about the actual progress in negotiations.
N
Nikhil C
India should stand firm on its foreign policy decisions. Buying Russian oil was in our national interest. The US needs to understand our strategic requirements.
M
Meera T
Hope this trade agreement benefits both countries equally. Sometimes these deals favor one side more. Our negotiators should ensure fair terms for Indian businesses.

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