India is optimistic about finalizing a pivotal framework trade agreement with the United States within this year, a move designed to tackle the longstanding issue of reciprocal tariffs and provide a significant boost to Indian exporters, a top government official announced on Friday.
Progress on the US-India Trade Front
Commerce Secretary Rajesh Agrawal, speaking at a FICCI event, clarified that while a comprehensive Bilateral Trade Agreement (BTA) is a longer-term goal, the immediate focus is on a framework deal. He emphasized that this initial pact is crucial for resolving the tariff challenges that have hindered Indian exports to the US market.
"These are two separate parallel negotiations going on (framework trade deal and a comprehensive BTA), but one will feed into the other. What needs to come first is the framework trade deal, which will be able to address reciprocal tariffs," Agrawal stated.
Although he refrained from giving a precise deadline, the Commerce Secretary expressed confidence, noting, "All I can say is that we are close, we have tried to iron out most of the issues. Now, it is only a matter of time the decision has to be taken when the two countries have to find the right landing zone to announce the deal."
India's Expansive Global Trade Strategy
Addressing the same event, Commerce and Industry Minister Piyush Goyal highlighted India's aggressive and strategic approach to global trade. He revealed that India is currently engaged in negotiating Free Trade Agreements (FTAs) with approximately 50 individual countries and blocs.
"We have all seen trade being weaponised. We have all seen the importance of having trusted partners around the world," Minister Goyal remarked, underscoring the need for reliable international partnerships.
The minister provided a detailed update on several key negotiations:
- Gulf Cooperation Council (GCC): The six-nation bloc, comprising Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain, has shown strong interest in a trade pact. India has already implemented a comprehensive agreement with the UAE, and talks with Oman are nearing completion.
- Other Key Partners: Active discussions are ongoing with New Zealand, the 27-nation European Union (EU), and Canada for a Comprehensive Economic Partnership Agreement (CEPA), with conversations set to begin next week.
- Review of Existing Pacts: India is also reviewing its current trade agreements with the 10-nation ASEAN bloc and South Korea to introduce more balance.
- New Engagements: Negotiations have recently commenced with the Eurasian Economic Union (EAEU), and India is poised to start talks with Israel very quickly.
A New Chapter for Indian Trade
The potential framework deal with the US, coupled with the wide array of other FTA discussions, signals a robust and forward-looking trade policy from New Delhi. Successfully concluding the US agreement would mark a major milestone, directly addressing a key pain point for Indian exporters and paving the way for deeper economic integration. This multi-pronged strategy aims to firmly position India as a central player in the global trade arena with a network of trusted partners.
