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US Deputy Secretary of State Christopher Landau indicated on Tuesday that a bilateral trade agreement between India and the United States is nearing completion, with only a final hurdle left to resolve.
Trade Deal Nears Resolution
Landau described the negotiations as having lasted "months." He stressed the importance of reaching "some closure" to tackle other pressing issues on the bilateral agenda. Speaking at the SelectUSA Investment Summit, he confirmed the deal is very close to being signed, though he lacks specific details on the exact timing.
India's Global Standing and Potential
Landau recognized India's significant global position, its status as the world's most populous country, and its "incredible potential" for economic growth. He suggested that past economic strategies might have limited this potential, but current trends point to massive growth that could help lift millions out of poverty.
Deal Framework and Challenges
The trade agreement's framework was announced on February 2, with the full text released on February 7. Indian negotiators met with U.S. officials last month to discuss the terms. India is seeking easier access to U.S. markets, a crucial aspect as both nations target $500 billion in bilateral trade by 2030. Initial reports suggested the framework included lowering U.S. tariffs on Indian goods from 50% to 18%. However, a recent U.S. Supreme Court decision regarding reciprocal tariffs under the International Emergency Economic Powers Act has added complexity, prompting India to request a recalibration of the agreement to protect its interests in the changing global tariff environment.