President Trump announced the US is close to a "very big" trade deal with India. He indicated significant progress in the long-awaited bilateral trade agreement negotiations.
Trump made these comments while discussing trade deals generally. He mentioned the recent China deal and stated many countries want agreements with the US.
An Indian negotiation team, led by Commerce Special Secretary Rajesh Agarwal, arrived in Washington for talks. This happened on the same day as Trump's announcement.
Both countries are working towards finalizing an interim trade pact before July 9. This deadline coincides with the suspension of US tariffs announced in April.
The US is seeking duty concessions from India on specific items. These include industrial goods, automobiles (especially EVs), wine, petrochemicals, dairy, and agricultural products like apples and nuts.
India faces challenges in offering concessions, particularly in agriculture and dairy. India has historically protected its dairy sector in previous trade deals.
India is requesting duty reductions from the US for its key export sectors. These include textiles, gems & jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
US Commerce Secretary Howard Lutnick recently expressed optimism about a deal. He stated one should be expected "in the not-too-distant future" and talks are productive.
The broader bilateral trade agreement aims for an ambitious goal. It targets more than doubling trade between the two countries to $500 billion by 2030, up from the current $191 billion.