Trade deal: India's talks with US continue, next round August-end
Sources told The Federal Desh that there have been substantial developments in recent days. All eyes are now on the upcoming discussions
India’s negotiations with the US over a bilateral trade deal are ongoing. The Central government has confirmed that it remains in constant touch with US authorities and that discussions on finalising a deal are actively underway.
According to sources, during the previous visit of American officials to Delhi, it was agreed that the next round of talks would be held in the final week of August.
Significant developments expected in coming days
Sources told The Federal Desh that there have been substantial developments in recent days. All eyes are now on the upcoming discussions at the end of August, which are expected to shed light on the direction of the negotiations.
Also read: Trump tariff: Domestic market on edge but no disruption just yet
Meanwhile, US Treasury Secretary Scott Bessent has warned that if the scheduled meeting between President Donald Trump and Russian President Vladimir Putin in Alaska on Friday fails, the Trump administration may impose additional secondary tariffs on India.
Trump’s 50% tariff sparks concern over trade deal
US President Donald Trump initially imposed a 25 per cent tariff on Indian goods. Following India’s crude oil purchases from Russia, an additional 25 per cent penalty tariff was levied, bringing the total to 50 per cent on imports from India to the US. This move has raised concerns that the ongoing trade deal negotiations could be derailed.
The Ministry of External Affairs (MEA) reacted strongly, calling the Trump administration’s action “unjustified, unwarranted, and inconsistent.” The ministry stated that it was unfortunate the US was taking such unilateral steps and imposing extra tariffs on India, especially when other countries too are acting in their national interests.
India’s trade deficit widens amid global uncertainty
The Ministry of Commerce recently released India’s trade data for July, showing the merchandise trade deficit at an eight-month high of over $27 billion. The surge was largely driven by imports outpacing exports. This data emerged around the time President Trump was preparing to impose new tariffs on India and other partner nations. However, July’s export data doesn’t reflect the impact of the US decision, as the increased tariffs are set to come into effect only from August.
Also read: US Treasury Secretary Scott Bessent warns of higher tariffs on India
According to the data, India’s exports to the US grew by 21.64 per cent between April and July, reaching $33.53 billion, up from $27.57 billion in the same period last year. Imports from the US also rose from $15.50 billion to $17.41 billion.
Exports and imports both rise in July
India’s merchandise exports in July climbed to $37.24 billion, compared to $35.14 billion in June. Imports in July surged to $64.59 billion, up from $53.92 billion in June. As a result, the trade deficit in July widened to $27.35 billion, significantly higher than June’s $18.78 billion. Despite global uncertainties, the Ministry of Commerce highlighted that India’s exports of goods and services rose in July, driven by strong performance in engineering, electronics, and jewellery sectors.
(This article was originally published in The Federal Desh)
