India, US to finalise $10bn trade deal ahead of Trump visit: Report

India and the US are likely to finalise a trade deal pegged above $10 billion (over Rs 71,200 crore) in February, The Economic Times has reported.

The deal will be finalised when United States Trade Representative (USTR) Robert Lighthizer visits New Delhi.

The report suggests that the deal is currently being vetted and will be signed when US President Donald Trump visits India. Trump is likely to visit from February 24-26. There has been no formal announcement regarding the visit so far.

This will be a precursor to a free trade agreement between India and the US, the report adds, citing sources aware of the matter.

Moneycontrol could not independently verify the report.

Lighthizer and Union Commerce and Industries Minister Piyush Goyal are likely to meet in the second week of February to finalise the terms of the deal.

The report also adds that the issue of medical devices — a bone of contention between the two sides — has been resolved.

India is also seeking restoration of benefits under the Generalized System of Preferences (GSP). Under GSP, some products can enter the US market duty-free if the beneficiary developing country meets the eligibility criteria set by the US Congress.

In 2019, Trump cited trade barriers while removing India from GSP that had allowed zero tariffs on $5.6 billion of exports to the US. In retaliation, India slapped higher tariffs on over two dozen US products.