India-US Trade Deal ‘Nearing Closure’ – Tariff Resolution in Focus
India and the United States are on the brink of finalizing a landmark trade deal aimed at resolving long-standing tariff disputes, according to a senior official involved in negotiations. The agreement, expected to unlock billions in trade opportunities, marks a turning point in bilateral economic relations.
A Long-Awaited Breakthrough
The India-US trade relationship, worth over $120 billion annually, has faced friction for years, particularly after the US revoked India’s preferential trade status under the Generalized System of Preferences (GSP) in 2019. India retaliated with tariffs on US goods like almonds, apples, and motorcycles.
A government official, speaking anonymously, confirmed that talks under the Biden administration have accelerated, with both sides optimistic about an early resolution.
Key Areas of the Trade Deal
The agreement is expected to cover:
- Tariff Reductions – India may lower duties on US medical devices, Harley-Davidson bikes, and agricultural products, while the US could reinstate some GSP benefits.
- Digital Trade & E-Commerce – New frameworks for cross-border data flows to support India’s booming digital economy.
- Intellectual Property Rights (IPR) – Stronger protections for US pharma firms while ensuring affordable Indian generics.
- Agricultural Market Access – Possible easing of India’s strict food safety norms for US dairy and pork exports.
Strategic Timing: Why This Deal Matters Now
- For India: Strengthening trade ties supports its Make in India push, positioning it as a global manufacturing alternative to China.
- For the US: Deepening economic collaboration with India reinforces its Indo-Pacific strategy amid tensions with China.
Potential Roadblocks
Resistance from domestic industries—Indian farmers and US labor groups—could delay concessions. Additionally, India’s data localization rules remain a sticking point.
What’s Next?
The deal could be announced during PM Modi’s upcoming US visit or a high-level bilateral meeting. A limited agreement now may pave the way for a full India-US Free Trade Agreement (FTA) later.
Final Takeaway
Once finalized, this trade deal will enhance economic ties, reduce trade barriers, and solidify India-US strategic partnership. Businesses and consumers in both nations stand to benefit significantly.
Stay updated with the latest developments on India-US trade relations.
