India is optimistic about finalising a framework trade deal with the United States within this calendar year, a move expected to resolve key tariff barriers facing Indian exporters, Commerce Secretary Rajesh Agrawal said on Friday.
Speaking at the 98th Annual General Meeting of industry body FICCI, Agrawal confirmed that negotiations between New Delhi and Washington are progressing steadily, despite delays caused by tariff actions introduced during the Trump administration.
Two Trade Tracks Under Discussion
Agrawal explained that India and the US are conducting two parallel sets of talks:
- A framework trade deal aimed at resolving reciprocal tariff challenges
- A comprehensive bilateral trade agreement (BTA) that would be finalised later
While the BTA will take longer, the framework deal is expected to lay the foundation by tackling tariff issues first.
“What needs to come first is the framework trade deal,” Agrawal noted, adding that most differences have already been ironed out.
Tariff Issues at the Core
The commerce secretary stressed that an agreement would benefit India only if both 25% tariffs are addressed:
- The 25% tariff imposed by the US for not having a trade deal
- The additional 25% tariff linked to India’s purchase of Russian crude oil
A Deal Within 2024?
Although Agrawal did not commit to a formal timeline, he said the government was “very hopeful” of a breakthrough this year — provided there are no last-minute sticking points.
“At the negotiators’ level, things are in a zone where something can be achieved in a short time… now it is only a matter of a political call,” he added.
Despite shifts in the global trade landscape in recent months, India has maintained firm positions on non-negotiable national interests in all trade discussions.
Investment & FDI Focus
Agrawal reiterated that foreign direct investment remains a crucial element of India’s trade approach, pointing to the India-EFTA agreement that envisions up to $100 billion in investments over time.