India, US push likely to finalise segment of trade pact during 90-day tariff reprieve: Official

Prime Minister Narendra Modi and US President Donald Trump - File Photo

As part of the intensified push by India and the United States to finalise a bilateral trade agreement, a segment of the proposed pact is likely to be sealed during the ongoing 90-day tariff pause announced by US President Donald Trump. According to a report by news agency PTI, citing a senior official, both countries have already finalised the terms of reference to formally begin negotiations.

"Lot of possibilities are there to finalise low hanging fruits. Lot of possibilities are there to finalise form and shape of the BTA," the official said adding everything is possible in 90 days if it is a "win-win" for both sides.

India and the US are engaged in finalising the trade agreement. Both sides have targeted to conclude the first phase by fall (September-October) this year with an aim to more than double the bilateral trade to USD 500 billion by 2030 from the current about USD 191 billion.

"The work has started. India is far ahead of other countries in negotiating a trade deal," the government official said, adding India is in continuous engagement with the US.

A lot of negotiations will happen through video conferencing, and there could be some visits.

On Friday, External Affairs Minister Dr S Jaishankar said that the Trump administration was quick in responding to what was tabled for a bilateral trade pact with India and New Delhi is geared up for a "very high" degree of urgency in concluding trade deals with the US and the European Union.

In an interactive session at the Global Technology Summit, Jaishankar said the US under President Donald Trump has fundamentally changed its approach to engaging with the world and it has consequences across every key domain, especially in the technology sector.

On April 2, Trump announced an additional 26 per cent tariff on Indian goods entering the US. But on April 9, he announced the suspension of these on India, along with other countries except China, for 90 days until July 9 this year. However, the 10 per cent baseline tariff imposed on the countries will continue to remain in place.

In 2023-24, the US was the largest trading partner of India, with USD 119.71 billion bilateral trade in goods (USD 77.51 billion worth of exports, USD 42.19 billion of imports and USD 35.31 billion trade surplus).

The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade.