India-US trade deal
India-US trade deal: India-America trade deal may be finalized. Commerce Secretary Rajesh Aggarwal has indicated that the much awaited bilateral trade deal between India and America is now on the verge of completion. However, he also clarified that a comprehensive free trade agreement (FTA) may have to wait a little longer.
Small deal ready, little delay in big deal
While talking to a media channel, the Commerce Secretary clearly said that America is a huge economy, hence it is natural that it will take time to conclude a ‘Comprehensive Free Trade Agreement’ (FTA) with it. That is, right now both the countries are close to reaching an agreement on the issues on which consensus has been reached, but long negotiations are needed for completely free trade.
The government’s emphasis is now on ‘balanced trade’. This means that India wants the rules of trade to be such that both sides get equal benefits. On the ongoing tussle regarding tariff i.e. import duty, the Secretary said that the main issue is in the category of ‘Goods’ and efforts are on to resolve it. However, he did not announce any specific date, but expressed hope that it would happen soon.
Good days are coming for exporters
This news is a relief for the economic health of the country. Despite the ongoing economic turmoil globally, India’s growth rate remains firmly around 7 percent. The government has set a target of exports of more than $850 billion in the current financial year.
The good news for the common man and farmers is that America has recently exempted more than 200 agricultural and food products of India from increased duties. Traders of tea, coffee, spices, dry fruits and processed food will directly benefit from this. When taxes on these products are reduced, Indian goods will be sold cheaper in the American market and demand will increase, which will ultimately benefit Indian farmers and producers. The Economic Survey 2025-26 also believes that a deal with America will reduce uncertainty on the external trade front.
Both countries ready for It Takes Two to Tango
Diplomacy plays an important role in trade agreements. The Commerce Secretary said in a very interesting manner, “It takes two to tango”, that is, clapping is done with both hands. His indication was clear that the deal will be successful only when equal enthusiasm and commitment is shown from both India and America.
Let us tell you that last month itself, US President Donald Trump had described Prime Minister Narendra Modi as his ‘close friend’ and a ‘wonderful person’ and said that a great deal is going to be made between the two countries. So far, six rounds of talks have taken place between the two countries.