New Delhi– India and the United States are reportedly close to finalising a long-stalled trade agreement that would reduce US tariffs on Indian imports to 15%-16% from the current 50%, according to a report by Mint, citing sources familiar with the matter.
Trade deal details and sectors involved
The potential deal primarily focuses on energy and agriculture. As part of the negotiations, India may gradually scale back its imports of Russian crude oil, the report said.
In addition, India may allow increased imports of non-genetically modified US corn and soymeal, facilitating greater market access for American agricultural products. The agreement could also include a mechanism to periodically review tariffs and trade conditions between the two countries.
Recent India-US discussions
US President Donald Trump said he spoke to Prime Minister Narendra Modi on Tuesday, with trade and energy forming part of their discussion. PM Modi confirmed the conversation but did not provide specific details.
“Thank you, President Trump, for your phone call and warm Diwali greetings,” PM Modi said on X, referring to the Hindu festival celebrated on Monday.
“On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” he added.
Trump also mentioned that India had assured the US that it would limit its oil purchases from Russia.
Expected announcement and implications
According to Mint, the finalisation of the bilateral trade agreement is likely to be announced at the ASEAN Summit later this month.
The move could boost trade relations between India and the US, reduce tariffs for Indian exporters, and potentially increase American agricultural exports to India. Analysts say the agreement may also enhance energy security and diversify import sources for India while strengthening strategic economic ties with the United States.