India and U.S. Expected to Sign Trade Agreement in July – Some Goods to Be Completely Duty-Free

India and the U.S. are reportedly aiming to finalize the first phase of a trade agreement by July 2025. This would include eliminating tariffs—up to 26%—on selected Indian exports such as leather, textiles, and labor-intensive goods.

Indian Commerce Minister Piyush Goyal is in talks with the U.S., and both sides have made substantial progress. Indian officials hope to boost exports under this agreement.

The deal will likely exempt some Indian goods from the U.S.’s 26% duty and potentially even the 10% base tariff. The agreement may also cover products like jewelry, leather goods, textiles, food, and essential oils. In return, India may lower tariffs on U.S. items like almonds and automobiles.

The first phase is expected to conclude before July 8, with a second phase, focusing on digital trade and services, targeted for completion by 2026.

In 2024–25, bilateral trade reached $131.8 billion, with India recording a $41.18 billion trade surplus. Both nations aim to double trade to $500 billion by 2030.

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