NEW DELHI, April 11: An interim trade agreement between India and the US could be finalised in the 90-day tariff pause announced by the Trump administration if it is a “win-win” for both sides, an official said on Friday.
The official also said the two countries have already finalised the terms of reference to start negotiations for the pact.
“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.
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A lot of negotiations will happen through video conferencing, and there could be some visits.
The US, on April 2, announced an additional 26 per cent tariff on Indian goods entering the US. But on April 9, the Trump administration announced the suspension of these on India 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.
From 2021-22 to 2023-24, the US was India’s largest trading partner. 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.
With America, India had a trade surplus (the difference between imports and exports) of USD 35.32 billion in goods in 2023-24. This was USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22, USD 22.73 billion in 2020-21, and USD 17.26 billion in 2019-20.
In 2024, India’s main exports to the US included drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), gold and other precious metal jewellery (USD 3.2 billion), ready-made garments of cotton, including accessories (USD 2.8 billion), and products of iron and steel (USD 2.7 billion).
Imports included crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft, spacecraft and parts (USD 1.3 billion), and gold (USD 1.3 billion). (PTI)
