India-US Trade Talks Aim for Interim Agreement Amid Tariff Discussions

India and the United States are advancing towards a crucial interim trade agreement, expected to be concluded before July 8. New Delhi is advocating for a full exemption from the recently imposed 26 per cent reciprocal tariff on domestic goods, amidst ongoing negotiations with U.S. representatives.

The 26 per cent tariff, instituted by the United States on Indian goods, has been temporarily suspended until July 9. During this pause, Indian exporters are subjected only to the standard 10 per cent baseline tariff. Both nations see the interim agreement as a stepping stone to a larger bilateral trade pact aimed at more than doubling trade to USD 500 billion by 2030.

Commerce Minister Piyush Goyal recently discussed ways to expedite the trade talks with U.S. counterparts, highlighting the importance of including digital services in the agreement. India is seeking significant tariff concessions for its labour-intensive sectors like textiles, seeking to leverage the current negotiation window to boost exports.

(With inputs from agencies.)