India, US near trade deal; tariffs on Indian goods may fall to 15-16 pc: Report

India and the United States are reportedly close to finalising a long-awaited trade agreement that could slash US tariffs on Indian goods to around 15-16 per cent from the current 50 per cent, according to a Mint report.

According to the report, the proposed agreement is said to focus primarily on the energy and agriculture sectors, with discussions reportedly entering the final stage.

Also Read: Piyush Goyal says no India-US trade deal without safeguards for farmers, MSMEs

Energy and agriculture at the core of talks

One of the key elements reportedly under negotiation is India’s gradual reduction of crude oil imports from Russia, which currently accounts for about 34 per cent of its crude imports, a move that aligns with Washington’s broader efforts to reduce global dependence on Russian energy supplies.

Mint quoted unnamed officials in the know as saying that both sides aim to conclude the deal before the ASEAN Summit later this month, where a formal announcement could be made.

The agreement reportedly seeks to strengthen cooperation in energy and agriculture, two areas that have been central to past trade negotiations between the two countries.

Market access for US agricultural products

As part of the agreement, India may allow greater imports of specific US agricultural products, including non-genetically-modified corn and soymeal, sources told Mint.

This step could help address long-standing US concerns about limited access to India’s highly protected agricultural market, while also seeking greater market opportunities driven by rising domestic demand in India in sectors such as poultry and ethanol.

As trade tensions with China shape global negotiations, the United States is looking for new buyers for its agricultural products following significant reductions in Chinese imports of US corn.

Also Read: India, US to push ahead on trade deal despite tariff tensions

Lower duties for Indian goods

The report also noted that the agreement might include a system for regular tariff and market access reviews, aimed at ensuring balanced trade terms between both nations over time.

In return, the US is expected to reduce its import tariffs on Indian goods significantly, bringing them down to 15-16 per cent from the existing levels of up to 50 per cent.

Such a move could make Indian exports, particularly in textiles, engineering goods, and pharmaceuticals, more competitive in the American market.

Also Read: Trump dials Modi on Diwali, reiterates India is not going to buy Russian oil

Trump-Modi call

The progress follows a phone conversation between US President Donald Trump and Prime Minister Narendra Modi earlier this week. Trump told reporters that the dialogue largely focused on trade and energy cooperation.

“Energy was also part of our discussion, and Prime Minister Modi assured me that India would limit its oil purchases from Russia,” Trump said.

Modi confirmed the conversation in a post on X, thanking Trump for his Diwali greetings.

“Thank you, President Trump, for your phone call and warm Diwali greetings. On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” Modi wrote.