Trade Deal Enters Final Stage
External Affairs Minister S. Jaishankar announced that the India-US trade deal is in its final stages and will be completed very soon. He said the deal opens a new phase in bilateral ties with “vast possibilities.” The agreement follows recent talks where the US agreed to reduce tariffs on Indian goods. However, Jaishankar clarified that Commerce Minister Piyush Goyal is handling the specifics, and he does not know the final timeline.
During his Washington visit, Jaishankar attended a critical minerals ministerial meeting. He met Treasury Secretary Scott Bessent and Secretary of State Marco Rubio. They discussed trade, economic cooperation, and strategic sectors. Moreover, Jaishankar said India-US cooperation on critical minerals is advancing rapidly. He also mentioned that discussions on defence, energy, and strategic issues will continue in the coming days.
Reduced Tariffs to Boost Exports
The External Affairs Ministry confirmed that the US will apply an 18% tariff on Indian goods. Prime Minister Narendra Modi discussed the arrangement with US President Donald Trump. As a result, Indian exporters will benefit from reduced tariffs. Officials expect this move to boost labour-intensive industries and create new jobs across India.
The trade deal will take effect once both sides complete formalities. This marks the first tranche of the bilateral agreement. While India will not reduce tariffs on all US goods to zero, officials ensured safeguards for sensitive sectors such as agriculture and dairy. Additionally, early meetings of bilateral mechanisms will strengthen economic and strategic ties. Ongoing discussions, including US Ambassador Sergio Gor’s meetings in New Delhi, aim to balance and advance the partnership across sectors.
