India and the US are finally close to locking in on a trade deal, sealing a pact which will address both the reciprocal and oil tariffs.Commerce secretary Rajesh Agrawal on Monday said that discussions are going on to close on a package which will include issues such as America’s market access to the country, and 25% reciprocal tariffs and the additional 25% oil duties. “We should get a closure soon”, the official added, pointing out that the negotiations have been ongoing virtually since the past months.He further informed that the deal consists of two components: a first tranche aimed towards resolving tariff-related issues and the other one, that will naturally take more time to negotiate.The pact that was formally proposed in February after instructions from the top leadership of both countries. The agreement aims to lift bilateral trade from $191 billion at present to $500 billion by 2030, building on talks first revealed during PM Modi’s visit to Washington earlier this year. According to government officials, negotiations have gathered pace in recent weeks. They said the BTA is shaping up to be “highly detailed and fully aligned with WTO norms,” adding that the discussions are being handled carefully to account for sensitive sectors. Officials also noted that an additional round of talks may not be needed at this stage. Besides the BTA, work on a long-discussed India–US LPG supply arrangement is also making progress. Agrawal confirmed that conversations on this front are advancing, while stressing that the potential LPG procurement is separate from the trade pact. He said the arrangement is aimed at helping maintain the overall trade balance between the two countries. In recent months, both sides had examined the possibility of an interim trade deal. India, however, has remained cautious about US suggestions seeking expanded access to its agricultural and dairy markets — areas that continue to be sensitive domestically due to their importance for employment and the livelihoods of millions.The Union commerce & industry minister, Piyush Goyal, had earlier stated, “We are working for a good trade deal in the interest of India. We want a fair, equitable, and balanced trade deal with the US. If that happens, it could happen any day, tomorrow, next month, or next year. But as a government, we are preparing for everything.” Additionally, a senior official further revealed that the trade talks were majorly completed and that no further round may be required. “They (the US) have to get back to us. It’s the most comprehensive, WTO-compliant treaty compared to any other nation. We negotiated very cautiously, keeping in mind the sensitivities of key sectors. There is no deadline,” the official said.The trade negotiations between the two nations have stalled since the US announced an additional tariff of 25% on Indian imports to the country, taking the total to a whopping 50%. Washington implemented the additional tariffs alleging India’s continuous buying of Russian crude, which it claimed, supported Moscow’s war machine against Ukraine.
