India - US Promote Trade Agreement for Mutual Benefit

Commerce Minister Piyush Goyal on Friday said that any trade deal with America would only happen when it is a win-win situation for both countries. “A free trade agreement happens only when there is mutual benefit. When the deal is made while safeguarding India's interests, keeping in mind that national interest will always remain paramount, then India is always ready to make deals with developed countries,” he said.

“India discusses on its own terms, and discussions are ongoing with various countries. Whether it is the European Union, New Zealand, Oman, the United States, Chile, or Peru, negotiations for agreements are underway with many countries,” Goyal said.

A delegation from India has returned from Washington following discussions about the interim trade agreement, which is expected to be concluded before July 9. However, negotiations are ongoing as certain matters in agriculture and automotive sectors require further resolution, an official told PTI.

The Indian delegation conducted negotiations in Washington regarding an interim trade agreement with the United States from June 26 - July 2. The delegation was headed by chief negotiator and special secretary in the commerce department, Rajesh Agrawal.

The official indicated that negotiations are in their final stages, with an announcement anticipated before July 9. The official said: "Indian team is back from Washington. Negotiations will continue. There are certain issues which need to be resolved in agriculture and auto sectors."

India's requests include duty concessions for its labour-intensive industries, encompassing textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oil seeds, grapes and bananas within the suggested trade agreement.

In the agricultural domain, the United States seeks reduced duties on products including dairy items, apples, tree nuts, and genetically modified crops.

Both nations aim to finalise discussions for the initial phase of the proposed bilateral trade agreement (BTA). The agreement targets increasing bilateral trade to USD 500 billion by 2030, up from the present USD 191 billion. An interim trade agreement is being pursued before the first tranche.

India's merchandise exports to the United States increased by 21.78 per cent to USD 17.25 billion during April-May this fiscal, whilst imports grew by 25.8 per cent to USD 8.87 billion.