India and the United States have agreed to intensify efforts aimed at the early conclusion of a mutually beneficial trade agreement. This development follows a period of strained relations, during which bilateral trade negotiations had stalled. A contributing factor to the impasse was the U.S. imposition of an additional 25% duty on Indian exports, specifically linked to India’s procurement of Russian oil, levied alongside an existing reciprocal 25% tariff.
India’s Commerce and Industry Ministry confirmed a decision to “intensify efforts to achieve the early conclusion of a mutually beneficial trade agreement.” However, trade experts express skepticism regarding the likelihood of substantial progress without the withdrawal of the additional 25% tariff tied to Russian oil. These experts cite “political and legal compulsions in Washington” as factors that currently limit the U.S.’s ability to offer India relief on this issue.
The sixth round of face-to-face discussions for the bilateral trade agreement had originally been scheduled for August 25. In response to the earlier tariff measures, India had reportedly begun to strengthen its trading relationships with other nations, including China.
Source: www.livemint.com