Last Updated:
As per the report, the two sides have completed the discussions on the mini-deal, which could pave the way for broader trade discussions.
Prime Minister Narendra Modi with US President Donald Trump. (Image: PTI/File)
In a significant move, India and the United States are likely to make a final decision on a mini-trade deal within the next 24 to 48 hours, CNBC-TV18 reported on Sunday citing sources.
As per the report, the two sides have completed the discussions on the mini-deal, which could pave the way for broader trade discussions.
The average tariff under the mini deal is likely to be around 10%, while the talks on comprehensive Bilateral Trade Agreement (BTA) are expected to begin after July 9, which marks the end of the 90-day suspension period of the Trump tariffs announced on April 2 on dozens of countries, including India, the report added.
As per the report, the mini-trade deal is likely to have annual quotas for lower tariffs on certain labour-intensive products from India. Certain American agricultural products, such as pecan nuts and blueberries, may be provided with lower tax rates.
The update came after US President Donald Trump readied tariff letters for 12 unnamed countries and Union Minister Piyush Goyal insisted that India ‘does not negotiate under deadlines’.
The two countries had started negotiations for a bilateral trade agreement in February, with a deadline to conclude the first phase by fall (September-October) this year. The two sides had earlier indicated plans to finalise an interim trade pact before that time.
Sources also told news agency PTI on Sunday that India had ‘drawn its red lines’ and the ball was now in Washington’s court to finalise the deal.
In February, the two countries announced starting negotiations for a bilateral trade agreement (BTA). They fixed a deadline to conclude the first tranche or phase of the BTA by fall (September-October) this year. Before that, the two sides are locking to finalise an interim trade pact.
On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from this 26 per cent tariff.
Last month, Trump hinted at a “very big” deal with India. “We are having some great deals. We have one coming up, maybe with India. Very big one. Where we’re going to open up India, in the China deal, we are starting to open up China,” he had said.
Commerce Minister Piyush Goyal last week stated that India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest.
FTAs are possible only when both sides get benefitted and it should be a win-win agreement, he has said.
“National interest should always be supreme. Keeping that in mind, if a deal is made then India is always ready to deal with developed countries,” Goyal had said on July 4.
The Indian team returned from Washington last week after holding talks with the US on an interim trade pact. Differences are also there on steel, aluminium (50 per cent) and auto (25 per cent) tariffs.
(With inputs from agencies)
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More
- First Published:
