India Eyes Multi-Phase Trade Deal with US

India is negotiating a three-stage trade deal with the United States, with hopes of reaching an interim agreement by July, before the Trump administration's reciprocal tariffs come into effect. The initial phase is expected to cover market access for industrial goods, agricultural products, and the reduction of non-tariff barriers like quality control requirements, according to officials in New Delhi.

Indian Commerce Minister Piyush Goyal is in Washington for a four-day visit to finalize the first tranche of the agreement. Goyal recently met with US Commerce Secretary Howard Lutnick and is expected to hold further talks with US Trade Representative Jamieson Greer before his trip concludes on Tuesday.

Despite progress, signs of tension have emerged. India has reportedly threatened retaliatory tariffs on US goods if the talks stall, while Trump has claimed that India offered to cut tariffs to zero, a statement Indian officials have denied. The final phase of the agreement, potentially requiring US congressional approval, may not be completed until next year.

India and the US have been in talks since Prime Minister Narendra Modi's February visit to Washington, where both sides pledged to deepen economic ties. However, disagreements over tariffs, market access, and trade balances continue to pose challenges as the two nations seek a comprehensive bilateral trade deal.

Source: Bloomberg