India and US Close to Trade Deal
Early Trade Agreement Expected Soon
New Delhi: India and the US are almost done with the first part of a trade deal. They want to finish it before July 9. On that day, President Donald Trump plans to lift the freeze on tariffs.
What’s in the Trade Deal?
- India might give some benefits on farm products and cars.
- India wants a 10% duty on products like textiles and shoes.
- Zero duty will have to wait until the US gets permission from Congress.
Good News for Indian Exports
A 10% tax on products where India is strong will help. This is very important if tariffs are put in place. India now has a 26% tariff. This includes the 10% basic duty. This gives India an edge over many other countries.
Removing Trade Barriers
India and the US also talked about health standards and technical trade barriers. They want to fix problems faced by Indian sellers. They also discussed digital trade, customs, and laws.
Why a Draft Text is Important
India wants a draft text ready before the deal is announced. The US has made announcements without a draft text before. India wants to avoid claims without a proper agreement. This has happened in recent talks with China and the UK.
What’s Next?
Several things will affect the final deal. This includes a court decision on tariffs. India hopes to keep its advantage even if the tariffs are found illegal. The deal should be done by Fall (September/October).
