Highlights:
- MEA confirms ongoing talks with the US to finalize trade deal.
- Trump praises Modi, says pact could be signed soon.
- Proposed deal may cut tariffs on Indian exports from 50% to 15%.
- India to boost US energy and agricultural imports.
- Agreement expected to start as a “framework pact.”
The India ministry of external affairs (MEA) on Thursday (30) confirmed that India and the US remain actively engaged in negotiations to finalize a comprehensive trade agreement, following remarks by president Donald Trump hinting at an imminent breakthrough.
Indian ministry spokesperson Randhir Jaiswal emphasized that the discussions between both sides are continuing constructively. India-US bilateral trade that we are engaged in, we continue to remain engaged with the US side to conclude a trade deal, and these discussions are continuing,” Jaiswal said during a weekly press briefing in New Delhi.
The update comes just a day after president Trump, speaking at an Asia-Pacific conference in South Korea, claimed that the two countries were close to concluding a major trade pact. He praised Indian prime minister Modi , saying he holds 'great respect and love' for Indian leader, and recounted his past efforts to prevent tensions between India and Pakistan through trade diplomacy.
“I said I was going to put 250 per cent tariffs on each country... and within 48 hours we had no war and no people killed. It makes me feel so good. We saved millions and millions of lives,” Trump said, while describing his approach to international negotiations.
Currently, the US imposes 50 per cent tariffs on Indian exports, half of which are reciprocal, while the remaining 25 per cent serve as a penalty linked to India's continued crude oil imports from Russia.
According to a Times of India report, negotiators from both nations have finalized a preliminary deal that would reportedly reduce US tariffs on Indian goods from 50 per cent to 15 per cent, in exchange for India decreasing its Russian oil imports and increasing energy purchases from the United States.
In addition, India is planning to import American corn to support its biofuel blending program and may acquire undisclosed defense equipment as part of the broader cooperation framework.
While the signing date has not yet been confirmed, sources suggest the deal will first be structured as a 'framework agreement,' setting the stage for a landmark trade and strategic partnership between India and the US.
