India, US likely to sign trade pact within 90-day tariff-pause period

IANS April 11, 2025 316 views

The United States and India are on the brink of finalizing a significant bilateral trade agreement within a 90-day tariff-pause window. Commerce Minister Piyush Goyal has expressed optimism about the negotiations, highlighting India's demographic and economic potential. Both countries are strategically working to prevent export routing and maintain trade integrity. The ambitious "Mission 500" aims to dramatically increase bilateral trade by 2030, signaling a promising economic partnership.

"Looking at the growth, India offers in the next 25-30 years with a large, aspirational, young population" - Piyush Goyal
India, US likely to sign trade pact within 90-day tariff-pause period
New Delhi, April 11: The first phase of the bilateral trade agreement between India and the US is likely to be concluded within the tariff-pause period of 90 days fixed by the Donald Trump administration, according to official sources.

Key Points

1

India and US aim to double trade to $500 billion by 2030

2

Negotiations progressing through video conferences

3

90-day tariff-pause period provides strategic window

4

National interests remain top priority

The terms of reference for the agreement have been finalised and further negotiations are scheduled to take place primarily through video conferencing, although if required, Indian negotiators may visit Washington or US officials can come to Delhi, senior officials said.

At the same time, a close watch is being kept to ensure that other countries do not route their exports through India to circumvent the higher tariffs imposed on them. Similarly, the Central Board of Indirect Taxes and Customs (CBIC) has also been alerted to ensure that Indian exporters do not use other countries as a conduit for re-routing.

The officials said that India has been a trusted partner to the US, and such manoeuvres could negatively impact its image.

Meanwhile, Commerce Minister Piyush Goyal told journalists on Friday that "very good negotiations" with the US were underway.

He said that India presents a compelling case to the United States for a bilateral trade deal, given the outlook on growth and demography.

"Looking at the growth, India offers in the next 25-30 years with a large, aspirational, young population who will add to the demand for goods and services, we believe India will be a compelling case to enter into a good agreement with the US," Goyal said while addressing a joint conference with Italy's Deputy Prime Minister Antonio Tajani.

"Deadlines are good to expedite talks, but there's no head-to-the-gun approach with regards to the BTA (bilateral trade agreement) negotiations. We have to keep national interests at a priority," the minister said.

India and the US are discussing the contours of a bilateral trade agreement (BTA), which is part of a new goal - "Mission 500" - aiming to more than double trade between the two countries to $500 billion by 2030.

On Wednesday, the US exempted 75 non-retaliating countries from its reciprocal tariffs for 90 days. Meanwhile, only a 10 per cent baseline tariff has been enforced on countries, except China.

Reader Comments

R
Rajesh K.
This is great news for our economy! A stronger trade relationship with the US could open so many opportunities for Indian businesses. 🇮🇳🤝🇺🇸
P
Priya M.
I hope they consider the impact on small businesses and local industries. While the deal sounds promising, we need to ensure it benefits all sectors, not just big corporations.
A
Amit S.
The 500 billion target seems ambitious but achievable if both sides negotiate in good faith. India's young population is indeed our biggest strength in these talks.
S
Sunita R.
I appreciate the government's cautious approach - "no head-to-the-gun" as the minister said. Trade deals rushed through without proper consideration often backfire.
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Vikram J.
While I'm optimistic about the deal, I'm concerned about the monitoring of export routing. The article mentions this briefly but it's crucial - we don't want to lose credibility as a trade partner.
N
Neha P.
The digital negotiation approach is smart given current circumstances. Shows adaptability in our diplomatic processes. Hope they can maintain momentum through video conferences!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
US-India Trade Deal Piyush Goyal Donald Trump Bilateral Trade Agreement Commerce Minister International Trade
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