India and the United States have decided to reschedule a key meeting between their chief trade negotiators, originally planned to finalise the legal framework for the proposed interim bilateral trade agreement. The meeting, originally scheduled for Washington, will now be held at a mutually convenient date as both sides continue discussions on tariff structures and trade terms. The interim trade deal framework was agreed upon earlier this month, aimed at reducing tariffs and strengthening trade ties between the two countries. Under the proposed arrangement, the United States is expected to reduce certain tariffs on Indian goods to around 18%, offering relief to exporters and improving market access.
The rescheduling of the negotiators’ meeting is also linked to broader tariff changes announced by the US administration, including new duties that could affect imports from multiple countries, including India. These tariff revisions could alter the final structure of the interim trade deal, requiring additional negotiations to ensure mutually beneficial outcomes. Despite the delay, both countries remain committed to concluding the interim agreement, which is seen as a first step toward a comprehensive bilateral trade pact. Officials had earlier indicated that once the legal text is finalised, the agreement could be signed and implemented in phases, potentially strengthening economic cooperation and boosting trade flows.
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The United States is India’s largest trading partner in goods, accounting for a significant share of India’s exports and overall bilateral trade. In 2024-25, total trade between the two countries reached approximately $ 186 billion, highlighting the importance of the relationship. The interim deal is expected to enhance market access, reduce trade barriers, and support long-term growth in bilateral economic ties. Overall, the rescheduling reflects the complexity of ongoing negotiations, as both countries work to finalise a trade agreement that balances tariff reductions, market access, and strategic economic interests.
