US-India trade deal expected 'in not too distant future', says US commerce secretary Lutnick

Time of India

2 days ago

US Commerce Secretary Lutnick
US commerce secretary Howard Lutnick said that a trade deal between New Delhi and Washington could be finalised soon.
Addressing the US-India Strategic Partnership Forum in Washington, Lutnick said that US President Donald Trump and Prime Minister Narendra Modi's relationship is very strong and very positive, and so it gives an easy path to do the trade negotiations.
He said, "Earlier countries get a better deal. That's the way it is. So those who come in, you know, July 4th to July 9th, there's just going to be a pile. I think India is trying hard to be one of the earlier countries, which I appreciate. But these, these kind of deals used to take two or three years, and we're trying to get them done in a month, which is, you know, just not the ordinary DNA of trading relationships between countries.
But what I hope to achieve is we would like market access, we would like our businesses to have reasonable access to the markets of India."
"I think if you have the right person on the other side, and what happens is, if they put a normal trade minister, it's an endless set of talking and no outcome, because they're used to saying, this kind of deal will take three years, let's get. We'll get this done in two years. And that's not really fun for me.
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So the idea is when they put the right person and India put the right person on the other side of the table, and we've managed, I think, to be in a very, very good place.
And you should expect a deal between the United States and India in the not too distant future, because I think we found a place that really works for both countries," he added.
He also said that the president is willing to call out things straight away, meaning India is very protectionist with tariffs.
At the summit, the US commerce secretary said that the President thinks America first, but Trump does not think America only or America exclusively.
"First, he's got to take care of home, so we're big and strong. But then he's going to take care of his allies. He's going to make sure he takes care of India, who he deeply, deeply admires and respects, and we are going to have a great, great relationship together," he said.
India-US trade deal talks
In the ongoing trade negotiations, India seeks complete relief from the 26 per cent reciprocal duty imposed on its domestic products.
India and the US have established a target to finalise the initial phase of the suggested BTA before autumn (September-October) this year.
India seeks to negotiate duty reductions in the proposed agreement with America, focusing on sectors that employ a significant workforce, including textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes and bananas.
The United States, in return, is requesting tariff reductions across various sectors, including industrial products, automobiles (particularly electric vehicles), wines, petrochemical items, dairy products and agricultural goods such as apples, tree nuts and GM (genetically modified) crops.
India maintains strict regulatory standards regarding GM crop imports from the US, making their entry unfeasible.
However, New Delhi remains receptive to importing non-GM products, including Alpha alpha hay, which serves as cattle feed.
The United States maintained its position as India's main trading partner for the fourth straight year in 2024-25, with two-way trade reaching $131.84 billion. The US constitutes approximately 18 per cent of India's overall goods exports, 6.22 per cent in imports, and 10.73 per cent of the nation's total merchandise trade.
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