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

India and the US have decided to continue their engagement on trade issues, aiming to strike a mutually beneficial Trade Agreement swiftly, the government said, following meetings between an Indian trade delegation led by Commerce and Industries Minister Piyush Goyal and US officials.

'Meetings evoked positive response

The meetings, which the government said evoked a “positive response”, were held during the Indian delegation’s visit to the US from September 22 to September 24.

According to a government statement, the Indian delegation held meetings with Ambassador Jamieson Greer, United States Trade Representative and Mr Sergio Gor, U.S. Ambassador-designate to India.

The delegation also held talks with key U.S.-based businesses and investors on promoting trade and investment between New Delhi and Washington.

“The delegation had constructive meetings with the U.S. Government on various aspects of the deal. Both sides exchanged views on possible contours of the deal, and it was decided to continue the engagements with a view to achieving early conclusion of a mutually beneficial Trade Agreement,” said the statement.

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'Confidence in Indian growth story'

“The meetings with businesses and investors evoked a positive response. The business leaders reposed confidence in the Indian growth story and expressed their desire to intensify their business activities in India,” it added.

The development comes at a time when the trade relations between India and the US have become strained with US President Donald Trump’s decision to impose a cumulative tariff of 50 per cent on Indian goods, including 25 per cent as a penalty for New Delhi’s purchase of Russian oil.

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The backdrop

President Trump has also hiked the fees to H-1B visas to $100,000 and imposed a 100% tariff on branded and patented drugs.

However, despite the tense trade relations between the two countries, both sides are keen on expanding bilateral energy trade. While Goyal had earlier said that India was keen on boosting energy trade with the US, the Trump administration’s Energy Secretary Chris Wright said that the US wants to grow its relationship with India, especially in the energy sector.

Wright clarified that the US does not want to punish India with tariffs, but is aiming to end Russia’s war in Ukraine, adding that New Delhi's purchase of Russian oil was the main point of friction with Washington.