Highlights – A trade agreement between India and the United States could be finalized soon. According to reports, tariffs on India could be reduced from 50% to 15-16%. This agreement will focus on energy and agriculture, allowing India to gradually reduce its imports of Russian crude oil. The India-US Trade Deal is likely to be announced at the ASEAN Summit.
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India-US Trade Deal – The long-running negotiations between India and the United States regarding a trade deal may now be finally concluded. According to a report by the news agency Reuters, India Mint, quoting three people familiar with the matter, reported on Wednesday that the two countries are very close to a trade deal. According to the report, the 50% tariff on India (Trump Tariff) could be reduced to 15-16%. This news is based on the report.
The report further states that under this agreement, which focuses on energy and agriculture, India may gradually reduce its imports of Russian crude oil. US President Donald Trump said he spoke with Prime Minister Narendra Modi on Tuesday. He stated that the conversation focused primarily on trade. Trump also discussed energy, and Modi assured him that India would limit its oil purchases from Russia.
India faces an additional 25 percent tariff
An additional 25 percent tariff is imposed on Indian exports due to India’s oil purchases from Russia. Currently, Russia supplies approximately 34 percent of India’s crude oil imports, while approximately 10 percent of the country’s oil and gas requirements (by value) come from the United States.
India could also further open its markets to non-genetically modified American corn and soymeal. The Mint report claims that New Delhi is advocating for a provision in the agreement that allows for periodic reviews of tariffs and market access.
India-US Trade Deal May Be Announced at ASEAN Summit
The report further states that the finalization of the bilateral trade agreement may be announced at the ASEAN summit between Donald Trump and Narendra Modi this month. India is considering increasing the quota on non-GM corn imports from the United States, while the 15 percent tariff will remain unchanged. The current limit is 500,000 tonnes annually, the report said. India could also allow more US corn imports to meet growing domestic demand from the poultry feed, dairy and ethanol sectors.
