India to Finalize US Trade Pact as Washington Implements Revised Tariff Framework

India-US Bilateral Trade Agreement Update

Status: Negotiations continue between India and the US for a bilateral trade agreement.

Key Development: The signing of the agreement is contingent on the US preparing a new tariff structure following a Supreme Court ruling that struck down President Donald Trump's executive powers to impose duties.

Timeline: The agreement was initially expected to be signed in March, but the court ruling has stalled the process. Tariffs are currently being levied under Section 122, which will remain in place for five months.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Impact on Trade: The US-Israel conflict with Iran is expected to negatively affect India's trade with Gulf nations, primarily due to logistical challenges and issues with air cargo. However, the impact is likely to be moderate.

Government Response: The government is considering support measures to back exports to West Asia, with steps expected to be announced in the coming days. The Centre still expects goods and services exports to reach around $860 billion.

Export Strategy: To offset export losses in West Asia, the government plans to expand shipments to other regions. The Centre aims to be in positive territory versus last year on merchandise exports by the end of the fiscal year.