US President Donald Trump on Wednesday hinted at the announcement of a possible trade agreement with India, saying “maybe” another deal was on the horizon.
"We have another deal coming up maybe with India," Trump was quoted as saying.
The statement comes even as a fifth round of talks between Indian and US trade officials is underway in Washington, with the two sides working toward a proposed bilateral trade agreement (BTA).
India deal may mirror US-Indonesia template: Trump
Earlier this week, Trump had indicated that the India pact may follow the contours of the recently finalised trade agreement with Indonesia. Under that deal, the Southeast Asian country will offer complete market access to US goods, while its own exports will face a 19% duty in the US.
In addition, Indonesia has committed to purchasing USD 15 billion in US energy, USD 4.5 billion in American agricultural products, and 50 Boeing jets.
Speaking to reporters, Trump added, “India is basically working along that same line. We are going to have access into India. You have to understand, we had no access to any of these countries. Our people couldn't go in, and now we are getting access because of what we are doing with the tariffs…”
The US has been pressing India to reduce duties on a range of products, including dairy, automobiles (especially electric vehicles), wines, apples, and genetically modified crops. In return, India is seeking duty relief on key export items like textiles, gems and jewellery, leather goods, chemicals, and shrimp.
Concerns over ‘lopsided’ trade framework
Trade experts have warned that any agreement modelled too closely on the Indonesia deal could harm India’s domestic sectors. The Global Trade Research Initiative (GTRI) raised concerns over the lack of reciprocity in the proposed terms.
“A bad deal, especially one that removes India's tariffs without reciprocal benefits, could be worse than no deal at all,” said GTRI founder Ajay Srivastava. He added that India must “negotiate transparently, guard against one-sided outcomes, and not succumb to pressure for quick, symbolic agreements that compromise long-term economic interests.”
India has so far resisted giving tariff concessions in sensitive sectors such as dairy, which it has never opened to any FTA partner. It is also pushing the US to remove or reduce the additional 26% tariffs it has imposed, along with duties on steel (50%) and autos (25%). Washington, in turn, has postponed the imposition of new tariffs on India until August 1.
The two nations are targeting an interim agreement in the coming months, with the aim to finalise the first tranche of the BTA by September–October.
Bilateral trade between the two countries has remained robust, with India’s merchandise exports to the US rising 21.78% to USD 17.25 billion in April-May this fiscal, while imports increased by 25.8% to USD 8.87 billion.
Source Name : Economic Times