US assures India of lower tariffs than peers under proposed trade deal: Report

The United States has assured India that it will face lower tariffs than its trading peers under the proposed bilateral trade agreement, according to a Bloomberg News report citing an official familiar with the negotiations.

The first phase of the agreement, which has been under discussion for nearly two years, will focus exclusively on goods, while services will be addressed in subsequent negotiations, the official said, requesting anonymity as the talks remain confidential.

India and the US had finalised a framework for the trade agreement earlier this year, but its formalisation has been delayed by several US trade investigations. Relations have also faced pressure over a new US measure allowing US President Donald Trump to impose tariffs of up to 100% on major purchasers of Russian oil, although those levies have currently been waived.

Despite these challenges, officials from both countries have recently expressed confidence that an agreement is nearing completion, with most outstanding issues resolved.

Commerce Secretary Rajesh Agrawal confirmed that a US delegation visited India in early November for trade negotiations.

US Ambassador to India Sergio Gor said last month that most major differences had been settled.

Deal announcement likely 'quite soon'

Commerce Minister Piyush Goyal said Thursday that India had negotiated a “very good deal” and was positioned to secure “one of the best deals with the US.”

Goyal on Friday said an announcement on the India-US trade agreement could come "quite soon", indicating that negotiations are progressing smoothly, with only a few outstanding issues remaining.

Speaking exclusively to Business Today TV's Karishma Asoodani, Goyal described the US as a crucial partner for India across trade, technology, defence and critical minerals.

MUST READ | Three stops, one agenda: PM’s visit to Canada, US, Brussels in mid-December to boost trade ties

"We're having fabulous negotiations with the United States of America. They are a very, very important partner of India's in terms of trade, in terms of technology, our defense partnership, our critical mineral partnership. It's a very multidimensional relationship," Goyal said.

He added that discussions remained friendly, with no major obstacles preventing an agreement.

Earlier, Goyal said India had negotiated favourable terms and would secure one of the "best" trade deals with Washington.

US Ambassador to India Sergio Gor also recently expressed optimism, saying the agreement had been "at the finish line for a very long time".

"The trade agreement has been at the finish line for a very long time, and we hope we will be able to get it across the finish line," Gor said.

However, India has maintained firm positions on sensitive agricultural sectors. Goyal reiterated that New Delhi would not compromise on dairy market access or permit genetically modified products.

India and the US finalised a framework for the agreement's first phase in February, but changing tariff policies and geopolitical developments have prolonged negotiations.

DON'T MISS | 'India-US trade deal at finish line', says Sergio Gor; highlights surging defense ties