India–U.S. Bilateral Trade Deal Details Finalized

Trade Volume Boost
India and the U.S. have set goals to double bilateral trade—from approximately US $190–200 billion at present to $500 billion by 2030.

Phase 1 Timeline
Negotiations began with a Terms of Reference agreement in February. A two-tiered “first triangle” deal is expected by fall 2025 (Sept–Oct), followed by later phases.

Tariff Reductions
India plans to reduce tariffs on roughly 55% of U.S. imports (worth about $23 billion) while the U.S. will hold off on imposing a threatened 26% reciprocal tariff until early July.

Coverage Areas
The agreement will include:

• Market access for industrial goods, labor‑intensive sectors, and certain agricultural products like nuts, grapes, and bananas (from India).
• U.S. pushes India to ease tariffs on goods such as automobiles, wines, dairy, and petrochemicals.

Sticking Points
Sensitive areas remain contentious: dairy, wheat, corn, and genetically modified crops are off-limits for now, while India seeks to drop a 10% baseline tariff and obtain tariff exemptions on steel exports.

Why It’s Urgent
Negotiations are accelerating ahead of the July 9 deadline to avoid triggering U.S. reciprocal tariffs. The fifth negotiation round concluded recently in Washington and both sides aim to finalize an interim deal before then.

***Photo Reference:https://economictimes.indiatimes.com/news/economy/foreign-trade/india-us-to-finalise-broad-contours-of-proposed-trade-agreement/articleshow/118330833.cms?from=mdr ***