India-US trade deal: 'Not too many differences between both sides'

India and the United States (US) have narrowed differences on issues related to the proposed trade agreement, a senior government official said on Saturday.

 

“There are not too many differences between both sides (on trade agreement),” the official said, without sharing any details of the latest round of negotiations.

 

Earlier this week, a team of officials from the commerce department, including Commerce Secretary Rajesh Agrawal, headed to Washington with a focus on reaching an early conclusion of the proposed trade agreement. Some officials from the negotiating team are on their way back from Washington.

 

On Wednesday, Agrawal had said that India is looking for a "win-win solution" for both sides in its trade talks with the US that would also address the "tariff issue".

 

 

As announced by President Donald Trump and Prime Minister Narendra Modi in February, the official deadline for the first tranche of the Bilateral Trade Agreement (BTA) continues to remain until the fall of 2025.

 

Package for exporters

 

The official said that the government is assessing the impact of the 50 per cent tariff imposed by the US on Indian exports and a call on the relief package will also depend on the progress of the trade agreement between both the countries, among other things.

 

“We are adopting a cautious approach before coming up with a package (for exporters). Currently, we are assessing the impact of the additional tariffs of different sectors,” the official said.

 

India is bargaining hard with the US for substantial reduction in the additional tariffs.

 

Around 45 per cent of India’s exports to the US remains outside the realm of the 50 per cent tariff. The government has estimated that as much as 55 per cent of India’s total merchandise exports to the US will get impacted by the additional tariff. The commerce department is still doing an assessment of the extent of impact on sectors facing higher tariffs. Shrimp, textiles and gems and jewellery are expected to be the worst-hit sectors.