India and the US may agree on an interim commerce pact by June 25, as per a report that quoted sources. This comes after sources had earlier stated that the commerce pact is probably going by July 8.
In response to a report in information company PTI, the sources stated, “Talks are shifting. Issues are on observe.”
This improvement comes after White Home financial adviser Kevin Hassett indicated that India is amongst a choose group with agreements “near the end line.” US President Donald Trump had earlier indicated that they weren’t in a rush and a commerce deal can be finalised whether it is mutually useful.
Particular Secretary within the Division of Commerce Rajesh Agrawal, who’s India’s chief negotiator, concluded his four-day go to to Washington final week, the place he held talks along with his US counterpart. Commerce and Trade Minister Piyush Goyal additionally concluded his Washington go to final week, which is believed to have given a push to the talks. Goyal additionally met US Commerce Secretary Howard Lutnick twice throughout his go to.
Earlier stories additionally said that India is pushing for a full exemption of the 26 per cent reciprocal tariff that the US had imposed on home items. The pause on the reciprocal tariff can be suspended after July 9.
Each the international locations are aiming to conclude the primary section of the bilateral commerce settlement by September-October this yr.
The US remained India’s largest buying and selling accomplice for the fourth consecutive yr in 2024-25, with bilateral commerce valued at $131.84 billion. The US accounts for about 18 per cent of India’s complete items exports, 6.22 per cent of imports, and 10.73 per cent of the nation’s complete merchandise commerce.
India recorded a commerce surplus of $41.18 billion in items with the US in 2024-25. This surplus has grown steadily from $22.73 billion in 2020-21 to $35.32 billion in 2023-24.
Each international locations intention to greater than double bilateral commerce to $500 billion by 2030.
India is in search of obligation concessions for labour-intensive sectors akin to textiles, gems and jewelry, leather-based items, clothes, plastics, chemical compounds, shrimp, oil seeds, grapes, and bananas within the proposed commerce pact. The US, in flip, needs obligation concessions on sure industrial items, vehicles—particularly electrical autos—wines, petrochemical merchandise, dairy, and agricultural gadgets like apples, tree nuts, and genetically modified crops.
