Delegation from India to visit US next week to finalise text of trade deal: Commerce Secretary

India US Trade Deal

India's Commerce Secretary Rajesh Agrawal on February 16 said that a delegation of Indian officials, led by chief negotiator and Joint Secretary at the commerce ministry Darpan Jain, will visit US next week to finalise the contours of the trade deal.

He added both sides aim to sign the agreement in March. The White House is expected to issue an executive order soon to slash the reciprocal tariffs, the Commerce Secretary further said, adding that in case there's a delay, the Indian delegation will take up the matter next week in Washington.

As per the much-awaited trade deal, the US has committed to cut reciprocal tariffs on Indian goods to 18 percent from 25 percent earlier, and also scrap the 25 percent additional penal tariff levied on India for New Delhi's Russian oil imports. The US had imposed overall 50 percent tariff on Indian goods in August last year.

India's merchandise trade deficit in January widened to $34.68 billion from $25.04 billion in December, as imports rose far more than exports.

Goods exports fell to $36.56 billion from $38.51 billion, while imports jumped to $71.24 billion from $63.55 billion.

The January numbers reflect the final impact of Trump's 50 percent tariff on India, as the effective rate has fallen to 25 percent and is expected to ease further to 18 percent as India and the US are set to sign a proposed trade agreement in March.

India has also signed a trade pact with the European Union, which is expected to come into force within a next year.