India and US Set to Finalize Key Trade Agreement: What to Expect?

India and US Trade Agreement on the Horizon

New Delhi: According to Commerce and Industry Minister Piyush Goyal, India and the United States are on track to finalize a joint statement regarding the initial phase of their bilateral trade agreement within the next four to five days.

Following the signing of this joint statement, the US is anticipated to issue an executive order that will lower tariffs on Indian imports to 18%.

Currently, Indian products face a reciprocal tariff of 25%, along with an additional 25% tariff imposed on purchases of Russian crude oil.

Goyal informed the press that a formal legal agreement for this initial phase of the trade pact is expected to be executed by mid-March.

He emphasized that the forthcoming joint statement will pave the way for a comprehensive legal agreement.

Importantly, Goyal noted that this agreement does not entail any investment commitments.

Once the joint statement is finalized, it will transition into a legal framework, with Commerce Secretary Rajesh Agrawal expressing optimism about signing the legal agreement by mid-March.

The completion of this legal text is expected to result in reduced tariffs on specific US goods imported into India.