&imwidth=800&imheight=600&format=webp&quality=medium "India, US hopeful of concluding first tranche of Trade Agreement by fall deadline: Report")
The United States and India are inching closer towards concluding the first tranche of the Bilateral Trade Agreement (BTA). Both sides have been negotiating the deal in the shadow of Donald Trump's tariff war that has upended the global economic order.
What government sources said about the India-US trade agreement
India and US negotiators have expressed optimism about sealing the deal by the fall deadline, government sources told ANI. An Indian delegation will likely travel to Washington this week to speak with its US counterparts, to iron out pending issues and finalize the initial segment of the agreement.
A senior government source told the news agency that India's discussions with the US are progressing on a positive path. The official said the two sides are hopeful that the first tranche of the Bilateral Trade Agreement will be concluded within the deadline.
During the upcoming talks, the two sides are expected to focus on key market access issues, regulatory cooperation, and expanding trade in the energy and technology sectors.
India may also decide to scale up natural gas and renewable energy technologies imports from the United States to further bolster the trade relationship between the two nations.
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"India is exploring avenues to buy more gas and renewables from the US. This aligns with our clean energy transition goals and helps diversify energy sources," the official said.
In August, Donald Trump-led US imposed a 50 percent tariff on Indian imports to the US. The move has potentially made Indian imports expensive compared to items sold by their Asian competitors.
Parallelly, India is also negotiating a Free Trade Agreement with the European Union. However, the two sides are discussing pending matters linked to the Carbon Border Adjustment Mechanism (CBAM), as well as trade concerns in the steel, auto, and agriculture sectors.
Indian negotiators are expected to visit Brusselsthis month for another round of discussions on the FTA.
The EU is India's third-largest trading partner. The conclusion of the agreement will provide both sides with greater market access and regulatory predictability.