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India says the first phase of its proposed trade agreement with the US has been finalised, with legal drafting underway as New Delhi seeks preferential market access and greater tariff stability.
India says the first phase of its proposed trade agreement with the US has been finalised, with legal drafting underway as New Delhi seeks preferential market access and greater tariff stability.
India and the United States have finalised the first phase of their proposed trade deal, with the agreement now undergoing legal drafting, India’s Trade Secretary Rajesh Agrawal said on Thursday, October 15.
The development marks progress in trade negotiations between the two countries as New Delhi seeks improved access to the American market and greater certainty on tariffs for Indian exporters.
Speaking at a media briefing on trade data, Agrawal said negotiations with Washington were moving in the right direction. India expects to conclude and sign the agreement at the earliest possible time, he added.
New Delhi is seeking preferential market access and greater tariff stability under the proposed pact, two key priorities as Indian businesses navigate uncertainties surrounding US trade policy.
Marco Rubio’s India visit adds diplomatic momentum
The trade negotiations come ahead of US Secretary of State Marco Rubio’s visit to India and Uzbekistan from October 17 to 22. During the visit, Rubio is expected to meet government and business leaders to discuss energy cooperation, commercial investment and broader economic ties.
The visit could provide an opportunity for both sides to discuss outstanding trade issues alongside their wider economic and strategic partnership.
More from BusinessDespite progress on the trade front, differences over India’s purchases of Russian oil remain a potential source of friction.
Ajay Srivastava of the Global Trade Research Initiative said Washington’s decision to purchase Russian diesel had raised hopes that India could avoid tariffs linked to its Russian oil imports. However, he cautioned that the US could still use the threat of such duties to push New Delhi towards a trade agreement on unfavourable terms.
The proposed deal comes against the backdrop of strained bilateral ties over the past year. Disagreements have included US President Donald Trump’s repeated claims of brokering an India-Pakistan ceasefire and a US military attack on a vessel off Oman that killed three Indian seafarers.
With the first phase now in legal drafting, the next steps will be crucial in determining when the agreement can be formally concluded and what benefits it will deliver for Indian exporters and businesses.
