Washington is buzzing with anticipation as Indian and American negotiators push to seal a landmark bilateral trade agreement. After months of intense discussions, most key issues have found common ground, though a few thorny matters persist, particularly around import-export duties and the sequence of implementation.
Both nations are eager for a pact that fosters stability and trust in their burgeoning trade ties. Recent weeks have seen remarkable progress, with only a handful of sticking points remaining. Sources close to the talks reveal that technical-level deliberations are in full swing. Once cleared by the US Trade Representative and India’s Commerce Ministry, the deal will head to Prime Minister Narendra Modi and President Donald Trump for the final green light.
Frequent phone conversations between Modi and Trump over recent months have reportedly laid the groundwork for this agreement. Trump’s optimism shone through during his Davos address, where he expressed confidence in forging a robust trade framework with India.
A major highlight could be the elimination of the 50% US tariff on Indian goods, imposed last summer and hitting the textile sector hardest. Despite this, overall trade volumes between the two countries have edged up slightly. While textiles and apparel faced pressure, certain fabric categories saw modest gains, mirroring trends in pharmaceutical exports where volumes grew overall.
Lingering legal uncertainties in the US add a layer of complexity. Officials insist a potential Supreme Court ruling on tariff authorities won’t derail current talks, but it looms as a future risk. Backup legal provisions, should they be needed, come with stricter limits on duties’ scope and duration, potentially clashing with prevailing political sentiments on trade policy.
Support in the US Congress remains solid for stronger India-US economic bonds, with voices from both major parties advocating deeper integration. However, immigration developments, like higher fees on skilled worker visas, have stirred unease among businesses and professionals, subtly shading perceptions of the bilateral relationship even if not directly tied to the trade deal.
As negotiations hurtle toward closure, this agreement promises to reshape trade dynamics, easing burdens on key Indian industries and signaling a new era of predictability in US-India commerce.