US officials to visit India next week for talks on interim trade deal
India is assessing the impact of a US court ruling against Trump's tariffs. US trade officials will visit next week to discuss a potential trade agreement. Rajesh Agrawal recently visited Washington for talks. Both nations aim to finalize the initial phase of a trade pact by fall. Agrawal highlighted the need to insulate supply chains from weaponization.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
India is reviewing the impact of a US trade court blocking most of President Donald Trump's tariffs in a ruling on May 28, an official said Thursday, adding that American trade officials will visit next week for discussions on the proposed interim trade agreement between the two countries.'We are in the process of reviewing the impact of the US court order,' said the official.The Court of International Trade found the president overstepped his authority by imposing across-the-board duties on imports from US' trading partners.The order has come amid India and the US expected to agree on an interim trade agreement by the end of June, with New Delhi pushing for full exemption from the 26% reciprocal tariff on domestic goods.'The US team is coming on June 5 or June 6,' the official said.India's chief negotiator for the bilateral trade agreement (BTA) with the US, Rajesh Agrawal , concluded his four-day visit to Washington last week where held talks with his American counterpart on the proposed agreement.Commerce and industry minister Piyush Goyal was also in Washington last week to give an impetus to trade talks. He met with US Commerce Secretary Howard Lutnick twice during his visit.Earlier in the day, Agrawal, who is Special Secretary in the Department of Commerce, said the talks are progressing well.'Hopefully, in this tough times also, we will be able to navigate and come out with good outcomes sooner than later. We should be able to work out a trade partnership where there are natural comparative advantages to our businesses on both sides,' he said at the Confederation of India Industry's (CII) Annual Business Summit, 2025.'There are only few areas where we compete. Most of the areas are where we can complement each other. If we can do a good trade deal, this can be a defining partnership in the trade arena and that's what is the intent behind approaching this bilateral trade agreement,' Agrawal said.He said the overall discussion around tariffs and trade deficit is the narrative of the US and those are the challenges they have to meet.'But that, I think, should not come in the way of our trade partnership that we are trying to stitch together,' he said.The US on April 2 imposed an additional 26% reciprocal tariff on Indian goods, but later suspended it for 90 days till July 9. However, Indian goods still attract the 10% baseline tariff. Both countries aim to conclude the first phase of the proposed bilateral trade agreement pact by fall this year.Noting that the co-existence of some non-market functions in the global trading model is one wrong in the world trading order, Agrawal said: 'We have the WTO…it has failed to provide that oversight and control where the non-market economic functions could have been controlled in the global trade and trading order. In a pure market perspective, there has been a market failure in global trade'.He said there is unpredictability all around which is creating all challenges for businesses also.'That is why I think now geopolitics is also awakening and we are entering into a world where, interestingly, both markets and supply chains are being weaponized,' he said but cautioned that 'we also need to look at insulating our supply chains in a manner that we are not vulnerable to any weaponization of markets or supply chains in future'.He said businesses in multiple geographies have prospered based on state support, subsidies and lack of transparency.'If I am a big market, I am trying to wield my weight in the ecosystem…who controls supply chains. And that is a big challenge for the global trading order today,' he said, adding that other countries are looking at India for not only sending more of their goods here but also as a major investment destination.At the CII event, Agrawal also said that with a 1.4 billion people, India cannot afford to be completely import dependent and leverage state support wherever it is required.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
37 minutes ago
- Hans India
Patriotism vs posturing: The real battle for Bihar has begun
Operation Sindoor has upended Bihar's political terrain, transforming a routine electoral fight into a high-stakes clash between unapologetic patriotism and political posturing. Prime Minister Modi's fiery rhetoric and nationalistic messaging have struck a deep chord in a state where voters rever military might and national pride. As Nitish Kumar fades and Chirag Paswan eyes the future, the NDA's internal unity remains its biggest challenge—and greatest opportunity. The INDIA bloc, still fumbling with mixed messages and confused alliances, risks alienating key constituencies, especially in rural and border areas. With women voters, youth, and even sections of Muslims responding to nationalism, old caste calculations are no longer enough. Populist promises from Tejaswi Yadav may grab headlines, but it is the emotion unleashed by Sindoor that could sway ballots. The 2025 Bihar election isn't just about power—it's a referendum on identity, vision, and the nation's soul Operation Sindoor has redrawn the political battlefield of Bihar. What was once a predictable clash of caste-based alliances is now being recast as a confrontation between nationalism and perceived political opportunism. The upcoming assembly elections are no longer just about governance—they're about identity, pride, and clarity of purpose. Prime Minister Narendra Modi's 'Chun Chun ke Marenge' declaration from Bihar and his recent references to how the Sindoor of Indian women turned into a missile against Pakistan have reignited patriotic fervour. For the NDA, this surge of nationalism is a potential game-changer. In a state where voters respond powerfully to military heroism and national security, the INDIA bloc's hesitation, silence, or criticism of Operation Sindoor may be seen as a betrayal, especially in rural and semi-urban constituencies. But sentiment alone won't win an election. The NDA still has a complicated internal equation to manage. The BJP's prospects depend significantly on maintaining unity and clarity of leadership. Nitish Kumar, once a towering figure in Bihar's politics, now finds himself on the back foot. His popularity has dropped to around 18%, his public appearances are rare, and his gaffes have only fuelled speculation about his fitness to continue. The opposition mocks him as the 'Bimar CM of a BIMARU state.' This vacuum creates an opportunity for a new generation of leadership. Bihar's youth, increasingly politically aware and aspirational, particularly those eyeing defence and government jobs, are inclined towards parties with a strong nationalistic and development-oriented image. This makes the BJP's potential promotion of Chirag Paswan a tantalising prospect. Paswan has declared his intent to shift focus from national to state politics, hinting at a possible leadership transition post-election. But declaring a CM face now could create tensions with Nitish's JD(U), so BJP may play the waiting game. Meanwhile, Tejashwi Yadav of the RJD, the INDIA bloc's youth mascot, is gearing up with populist promises like the Mai Bahini Maan Yojana (Rs 2500 monthly to women), subsidised LPG, and free electricity. Whether these freebies can match the emotional and nationalistic connect forged by Operation Sindoor remains to be seen. Over the last two decades, women voters have emerged as a decisive force in Bihar politics. Since 2010, their turnout has consistently outstripped that of men. Recognising this, the NDA has doubled down on gender-targeted welfare and infrastructure. Mahila Haats, pink toilets, women-only buses, subsidies for e-rickshaws, rental assistance for female cops, and reservations in BSRTC jobs are ongoing schemes. Educational schemes like free cycles, uniforms, and reserved seats in medical and engineering colleges further aim to consolidate the female vote bank. Still, Tejaswi's targeted cash handouts could lure some segments of this electorate, particularly in economically vulnerable zones. The battle for women's votes may end up being the election's hidden decider. Bihar's political DNA has long been dominated by caste arithmetic. Traditionally, JD(U) leaned on Kurmi-Koeri (upper backward classes) support, RJD on Yadav-Muslim votes, and BJP on upper castes and urban voters. But these boundaries are blurring. Operation Sindoor, and the strong reaction it evoked across demographics, may shift traditional loyalties. Even Yadav and Pasmanda (deprived and downtrodden) Muslim voters in border areas may reconsider their stance if they perceive the INDIA bloc's stance as undermining national pride. Added to that a deeper fatigue is also settling in among sections of the Muslim electorate, weary of being used as mere vote banks. Modi's push to reach out to Pasmanda Muslims and the nationalist tone of Operation Sindoor could further erode the INDIA bloc's Muslim consolidation. Several smaller but significant players are poised to split votes and inject volatility into the election. AIMIM, led by Asaduddin Owaisi, is riding a wave of popularity among young Muslims following his fiery support for Operation Sindoor and denunciation of Pakistan's misadventures. While the party has sent a lukewarm proposal to RJD for alliance, insiders see this as more about optics than intent. From its current tally of five seats, AIMIM could double its count—largely at the INDIA bloc's expense. Prashant Kishor's Jan Suraj, contesting all 243 seats, is running a campaign unlike any other. He doesn't ask for votes; instead, he offers solutions. 'Even I might betray you if I win—so don't believe anyone blindly,' he tells voters. His emphasis on governance and local problem-solving may not win him power, but it may cut into the anti-incumbency vote, hurting INDIA bloc more than the NDA. Left parties continue to fade into irrelevance, with their vote share shrinking rapidly. Bihar is not a monolith. Regional nuances will heavily influence the outcome: North Bihar, especially Seemanchal and Mithila, is fluid and unpredictable, with AIMIM, RJD, and BJP all vying for dominance. Central Bihar could become the swing zone. If the NDA remains united, it holds the edge. Border districts—affected most by Pakistan's misadventures—may swing towards the NDA due to patriotic sentiment and the emotional aftershocks of Operation Sindoor. Early speculation suggests the NDA could bag between 125 and 150 seats in the 243-member Assembly. The INDIA bloc may secure around 70, while the remainder would be split among AIMIM, Jan Suraj, independents, and possibly the Left. A party or alliance needs 122 seats for a simple majority. Should the NDA cross the threshold comfortably, the post-poll narrative could shift to leadership. Chirag Paswan, youthful and ambitious, is a natural contender. With Nitish Kumar fading, the BJP could spring a surprise, especially if it helps maintain unity within the alliance while projecting a fresh face for Bihar's future. Rahul Gandhi has made Bihar a key focus, visiting the state more than any other in recent months. But his continued jibes against the army and mocking tone toward the Prime Minister have cost him dearly in the hyper-nationalist mood post-Sindoor. The Congress, far from rejuvenated, is dragging the INDIA bloc into confusion and controversy. His rhetoric—blaming Modi for surrendering to Trump, downplaying Operation Sindoor as a 'chutput war,' and alleging massive Indian casualties—risks alienating patriotic voters and playing directly into the BJP's hands. Poll analysts estimate that around 35 per cent of Bihar's electorate is committedly anti-BJP. This gives the INDIA bloc a base—but not an edge. With Modi's personal popularity, the emotional impact of Operation Sindoor, a robust women-centric agenda, and a fragmented opposition, the NDA holds a visible advantage. But Bihar is a land of last-minute swings and layered loyalties. The real battle will be decided by how effectively the NDA manages its internal dynamics, and how smartly the INDIA bloc reinvents its narrative—if at all. In 2025, Bihar won't just vote for governance. It will vote for identity, vision, and direction. Operation Sindoor didn't just change military dynamics—it may well have changed the political future of one of India's most complex states. (The author is former Chief Editor of The Hans India)
Hans India
37 minutes ago
- Hans India
Tata-Dassault fuselage deal will boost manufacturing in general
The signing of four Production Transfer Agreements by Dassault Aviation and Tata Advanced Systems Limited (TASL) to manufacture the Rafale fighter fuselage in India is a big fillip to not just defence production in the country but also manufacturing in general. The French plane-maker rightly said that it marks 'a significant step forward in strengthening the country's aerospace manufacturing capabilities and supporting global supply chains.' The fuselage of an aircraft is its central body portion, excluding the engines, tail, and wings. It houses the cockpit, avionics, fuel, and payload—essentially serving as the backbone of the aircraft. In the case of Rafale, a multirole fighter jet renowned for its agility, advanced avionics, and combat effectiveness, manufacturing the fuselage involves high-precision engineering, advanced composites, and tight tolerances. Bringing such a sophisticated process to Indian soil reflects the maturity of the country's aerospace manufacturing environment and the trust global original equipment manufacturers (OEMs) are increasingly placing in Indian firms. In recent years, numerous Indian companies have emerged as key players in the defence manufacturing sector, contributing to the country's vision of self-reliance under the Atmanirbhar Bharat programme. Major public sector undertakings like Hindustan Aeronautics Limited, Bharat Electronics Limited, and Bharat Dynamics Limited have long been at the forefront of producing aircraft, radars, missiles, and other critical defence systems. Alongside them, private sector giants such as TASL, Larsen & Toubro (L&T), Mahindra Defence Systems, and Bharat Forge have significantly expanded their footprint in defence production. These companies manufacture a wide range of equipment, including artillery systems, armoured vehicles, UAVs (unmanned aerial vehicles), and missile components. Their growing capabilities are further boosted by partnerships with global defence firms, enabling technology transfer and joint ventures. This robust participation from both public and private sectors is crucial for reducing import dependence and building a strong, indigenous defence industrial base. The Dassault-TASL partnership is a testament to the vision of the Make in India initiative, which has been pushing for increased localisation in defence procurement. By transferring production capabilities to India, Dassault is enabling Indian companies to climb up the value chain—from low-end assembly to high-end design and production. The collaboration with TASL, a company already experienced in aerospace production, enhances India's ability to build a complex, high-performance defence product and helps cultivate a local ecosystem of skilled workers, advanced suppliers, and engineering talent. Furthermore, this move significantly reduces India's reliance on imports for critical defence hardware, contributing to strategic autonomy. Over the decades, India has been one of the world's largest arms importers. While importing advanced weapon systems has been necessary to meet immediate defence requirements, long-term sustainability lies in indigenisation. The Rafale fuselage manufacturing agreement is, therefore, more than a business deal—it is a step toward building a sustainable and technologically advanced defence industrial base within India. The economic implications of this development are equally profound. High-technology manufacturing generates employment across the value chain—from technicians and engineers to logistics and quality assurance personnel. The joint venture will not only create direct employment but also foster ancillary industries, leading to the development of an aerospace manufacturing cluster with potential spillover benefits to the civilian aviation sector. The infrastructure and capabilities established through this programme can later be leveraged for commercial aerospace production, such as passenger aircraft components, thereby further integrating India into the global aerospace supply chain.
Mint
42 minutes ago
- Mint
Pakistan writes 4 letters to India, urging them to reconsider decision to suspend Indus Waters Treaty
Pakistani authorities reportedly wrote letters to their Indian counterparts several times since April to reconsider the decision to suspend the Indus Waters Treaty, sources said on Friday. India had announced its decision to suspend the Indus Waters Treaty (IWT) of 1960 with Pakistan on April 23 — a day after at least 26 people were killed in the Pahalgam terror attack. The Ministry of External Affairs had then said that the Indus Waters Treaty will be held in "abeyance" until Pakistan irreversibly ends its support for cross-border terrorism. Over a month later, the Hindustan Times reported that Pakistan's water resources secretary Syed Ali Murtaza sent four letters to India's Jal Shakti ministry since then, urging a review of the decision to suspend the treaty. It wasn't immediately clear when the letters were sent, but a person aware of the matter said that three of the letters were written after Operation Sindoor, the report added. Sources told the Hindustan Times that the Pakistani side continued to claim that the treaty cannot be unilaterally suspended by India and that the suspension violates the pact's provisions. The letters were said to be a response to a formal notification on April 24 from India's water resources secretary Debashree Mukherjee to her Pakistani counterpart about the decision to keep the treaty in abeyance. Mukherjee had reportedly written: 'The obligation to honour a treaty in good faith is fundamental to a treaty. However, what we have seen instead is sustained cross-border terrorism by Pakistan targeting the Indian Union territory of Jammu and Kashmir.' There has been no response by India to Pakistan's letters so far. Sources, however, claimed that India 'remains firm on its decision.' External affairs ministry spokesperson Randhir Jaiswal reiterated on April 29 that the country would not engage in talks with Pakistan until the neighbour 'credibly and irrevocably abjures cross-border terrorism.' According to the report, the Indian side has stopped sharing all data related to the flows of the western rivers – Indus, Jhelum, and Chenab – that were allocated to Pakistan under the 1960 treaty. Pakistani leaders said earlier any reduction of water flows allowed under the Indus Waters Treaty will be seen as an 'act of war.' The Indus Waters Treaty has survived four wars between India and Pakistan since its signing in 1960, making this the first time the pact has been suspended.
