NEW DELHI: The planned bilateral trade agreement (BTA) between India and the US might take a “win-win shape and form,” before the 90-day window created by the pause on full reciprocal tariffs, a senior government functionary said on Friday.
The two sides, the person said, have already finalised terms of reference for talks over the first segment of the pact. “A lot of possibilities are there to finalise low hanging fruits. Everything is possible in 90 days if it is a win-win for both sides,” the official added, on condition of anonymity.
US Vice President J D Vance is expected to visit India this month and the trade-related issues are expected to figure prominently in the talks. External Affairs Minister S Jaishankar also said at an event during the day that India wants to seal the deal with the US as quickly and is approaching the talks with a high degree of urgency.
The BTA was announced after a meeting between Prime Minister Narendra Modi and US President Donald Trump on February 13, the very day that the US unveiled its reciprocal tariff plan. Through the BTA and related measures both countries are aiming to increase their bilateral trade to $ 500 billion by 2030 from $ 200 billion at present.
Exporters also want the BTA to be expedited so that their shipments can continue to go to the US without any tariff major disadvantage after the 90-day pause expires.
US President Donald Trump announced a pause in full rollout of reciprocal tariffs as more than 75 countries approached it for a trade deal to blunt the impact of reciprocal tariffs. Many important trading partners of the US have publicly voiced the offers. The European Union and Vietnam have offered a zero-for-zero deal where all duties will be eliminated by both sides.
Prior to the pause, on April 2 additional duties of 26% on India were announced. Its competitors Vietnam were to pay 46%, Bangladesh 37%, Sri Lanka 40% and Thailand 36%.
With extra tariffs for exports capped for all countries barring China – where they have gone up to 145% after a series of escalations – the government has tightened the vigil to ensure that India is not used by any other country to route exports to the US.
Source: The Financial Express
Industrial Output Growth Slows To 6-Month Low Of 2.9% In February 