India-US Trade Deal Nears Completion, Says US Deputy Secretary Landau

India-US Trade Deal Nears Completion

Key Figures:

• $500 billion: India's intended purchase of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years
• 18%: Reciprocal tariffs on Indian goods to be reduced from 25% under the bilateral trade agreement
• 25%: Tariffs imposed on India for purchasing Russian crude oil, which will be removed under the agreement

Summary

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The United States Deputy Secretary of State, Christopher Landau, expressed optimism regarding the ongoing negotiations for a bilateral trade agreement between the US and India. He stated that the agreement is almost at the finish line and could unlock huge economic potential.

Economic Update

Under the proposed agreement, the US will reduce reciprocal tariffs on Indian goods to 18% from 25%. The US will also remove the 25% punitive tariffs imposed on India for purchasing Russian crude oil. Both sides have agreed to reduce import duties on a number of goods, with India committing to eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.

Energy Cooperation

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The Deputy Secretary of State emphasized the importance of energy cooperation between the two countries, highlighting the US as a strong alternate energy source for India. The US is willing to work with India to ensure its energy needs are met in the short and long-term, and is well-positioned to support India as it diversifies its energy sources.

Next Steps

The chief negotiators of both countries were scheduled to meet in Washington to finalize the legal text of the deal, but the meeting has been put on hold due to the US Supreme Court's verdict on Trump tariffs.