Trade negotiations between India and the U.S are advancing positively. This is according to India’s chief negotiator, Rajesh Agrawal. Speaking at an event in New Delhi, Agrawal expressed optimism about reaching a favorable agreement soon despite challenging circumstances. Agrawal said, “We are making good progress, and even in these challenging times, I hope we can find our way to positive results sooner rather than later.” New Delhi aims to finalize a trade agreement with Washington within the 90-day pause on tariff increases. The suspension announcement came after Trump announced on April 9 that there would be a 26% tariff on imports from India. Kevin Hassett, a Director of the National Economic Council of the United States, recently noted tha t the U.S.-India trade deal is near completion. India offered ‘deep cuts’ in import tariffs from the U.S. to counter Trump’s tariff Prime Minister Narendra Modi’s government is working quickly to reach a basic trade deal with the U.S. They want to prevent President Donald Trump from putting a 26% “ reciprocal tariff ” on all Indian products starting July 9. In the ongoing negotiations, India has offered “ deep cuts’ in import tariffs on several goods to counter Trump’s tariff. However, according to two people who know the ongoing negotiations, the country wants certain levies to remain as they are for some goods to protect its sensitive sectors like agriculture, foodgrains, and dairy products. One of the people, who wished to remain anonymous because the talk was private, revealed a possibility for extremely deep tariff reduction coming from India under the bilateral trade agreement. T he individual emphasized that such concessions would depend on achieving a well-balanced outcome for both countries. However, the source refused to elaborate on the extent of the U.S. goods on which New Delhi had offered to slash tariffs because the negotiations were at an “early stage,” and there still could be a backlash from affected industries. Nevertheless, the source disclosed that India’s trade negotiators had communicated flexibility over less-sensitive farm products such as almonds, which face up to 120% tariffs. New Delhi could also lower its ceilings by 2.5 to 3 percent on its applied tariffs on imported oil and gas. India maintains a firm stance on retaining high tariffs in the key agricultural sector Indian trade officials have privately told their American counterparts that any likely opening to the United States would largely reflect what was seen in other recent trade agreements. In a deal with the United Kingdom finalized earlier this month, India agreed to reduce tariffs on alcoholic spirits and cars, including electric-powered cars, car parts, and engineering goods. The specifics of India’s proposal so far suggest it falls short of the expectations set by President Trump, who declared last month, “They’ve offered us a deal where they’re basically willing to charge us no tariff at all.” Contrary to his expectations, India’s trade negotiators had put a tough stand on keeping its high tariffs on key farm items like wheat, rice, maize, and dairy. This area employs millions of Indians, the two people said. India currently charges tariffs ranging from 70-80% on rice imported from the United States and between 30-60% on dairy products from America. In addition, the Modi government is expected to push for an exemption from U.S. social security contributions for Indian professionals on short-term visas — a demand New Delhi formally raised with Washington. The UK recently granted a similar exemption as part of a trade agreement concluded this month. India’s Ministry of Commerce declined to comment. The White House, U.S. Commerce Department, and Office of the U.S. Trade Representative did not immediately respond to requests for comment. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
