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Hindustan Times
3 days ago
- Business
- Hindustan Times
India, US eye early trade deal before July deadline
India and the US on Thursday commenced another round of bilateral trade negotiation within this month aiming to expedite a mutually beneficial early harvest deal before the Trump administration's country-specific reciprocal tariffs on merchandise imports from 57 nations, including India, kick in from July 9, people in the know said. India's demands are related to 'greater and preferential market access' for Indian goods(Representational Image) The Indian negotiating team led by chief negotiator and special secretary-commerce Rajesh Agrawal reached Washington to commence two-day deliberations on Thursday, mainly to resolve current bilateral trade issues so that the two sides agree on an interim deal, paving the way for the first tranche of a proposed Bilateral Trade Agreement (BTA) by September-October 2025, they said, requesting anonymity. After the conclusion of the first tranche, the two parties will negotiate a comprehensive free trade agreement (FTA) to double the bilateral trade to $500 billion by 2030. According to them, initial negotiations between India and the US are focused on current issues. For the US, India's high tariff barriers are the cause of its major trade deficit with the South Asian country. It is asking India to eliminate all tariff (nearly zero) and non-tariff barriers for most American goods, including automobiles, medical devices and agricultural products. According to the commerce ministry's data, India enjoyed a $41.18 billion merchandise trade surplus with the US in 2024-25. Also read: Key issues in India, U.S. trade talks ahead of July 9 deadline On the other hand, India's demands are related to 'greater and preferential market access' for Indian goods, they said. India's asks are threefold. First, it wants the US to withdraw reciprocal tariffs on its goods immediately after the interim deal. This includes both the 10% 'baseline' levy imposed by the Trump administration on all countries (including India) from April 5 and the proposed addition of 16% country-specific reciprocal tariff on Indian goods from July 9. Second, India wants the US to withdraw the abnormally high safeguard duties imposed on Indian steel, aluminium, automobiles and auto parts, they said. The third ask of New Delhi pertains to MFN (most favoured nation) rates. As India is asked to reduce MFN tariffs on American merchandise to nearly zero, India wants Washington to commit the same on the principle of reciprocity, they added. Experts said negotiations so far are on the right direction as both partners aim at mutually beneficial outcomes of the talks. 'This trade deal is crucial for both partners as the US is the world's biggest market and India is the world's fastest growing major economy. A comprehensive bilateral trade agreement between the two that tackles all outstanding issues will take time, hence the two countries could address their immediate concerns through an early harvest deal and build therein provisions for negotiating a comprehensive free trade agreement,' said Agneshwar Sen, trade policy leader at consultancy firm EY India. Another trade expert, who did not wish to be named, said: 'Immediate threat to India is the 26% additional tariff (10% + 16%) on Indian goods in a crucial market from June 9. The second issue is already disputed at the WTO, pertaining to steel, aluminium, automobiles and auto components. After these two issues, the reciprocity in reducing MFN rates would be negotiated.'
NDTV
16-06-2025
- Business
- NDTV
India's Exports To US Rise 16.9% To $8.83 Billion, Imports Dip 5.76% In May
New Delhi: India's merchandise exports to the US rose by 16.93 per cent to USD 8.83 billion in May, while imports dipped by 5.76 per cent to USD 3.62 billion during the month, according to the commerce ministry data. During April-May, the country's exports to the US increased by 21.78 per cent to USD 17.25 billion, while imports rose by 25.8 per cent to USD 8.87 billion, the data showed. When asked about the impact of high tariffs imposed by the US on steel, aluminium and auto parts, Special Secretary in the Department of Commerce Rajesh Agrawal said India does not export a lot of steel and aluminium to the US. There is a uniform duty on auto components for all countries, so "we have not seen a big dent" on the sector. But if it continues for long, there could be some impact. If some countries will get exemptions from this duty then it may impact Indian players, he added. The US has imposed 25 per cent tariffs on these products. The US was the second-largest trading partner of India in April-May. China, another major trading partner of India, saw a 25 per cent jump in exports from India to USD 1.64 billion in May and 18.75 per cent growth in April-May to USD 3.04 billion. Imports from the neighbouring country in May rose by 21.16 per cent to USD 10.31 billion while in April-May by 24.23 per cent to USD 20.22 billion. Singapore, Germany, Australia, Belgium, Korea and Russia were also among the countries which saw positive growth in exports from India in May. However, exports to the UAE, the Netherlands, the UK, Bangladesh, Saudi Arabia, South Africa, Italy, France, Malaysia, and Brazil declined in May. On the imports front, inbound shipments in May declined from nations including Russia, Iraq, Saudi Arabia, Indonesia and Qatar. However, imports rose from the UAE, Japan, Korea, Singapore and Germany. Commenting on the data, economic think tank GTRI said that India and China's latest trade figures showed how the US-China trade war is reshaping global trade flows. Released by China Customs on June 10 and India's Commerce Ministry on June 16, the May trade data reveals a sharp drop in China's exports to the US and a noticeable redirection of trade to markets like India, the EU, and ASEAN. "India's import surge in electronics and machinery, much of it from China, and rising exports to the US suggest that global supply chains are adapting quickly. The numbers also signal rising risks for India amid Middle East tensions and a more protectionist trade environment," GTRI Founder Ajay Srivastava said. The decline in China's shipments to the US is being partially offset by increased exports to other markets, including the EU (up 12 per cent to USD 49.5 billion), ASEAN (up 15 per cent to USD 58.4 billion), and notably, India (up 12.4 per cent to USD 11.13 billion). Two categories with high import growth stood out - electronics (up 27.5 per cent to USD 9.1 billion) and machinery and computers (up 22 per cent to USD 5 billion). "Part of this increase originated in China, as India's combined imports from China and Hong Kong surged by 22.4 per cent , from USD 9.8 billion to USD 12 billion," he said.
Time of India
16-06-2025
- Business
- Time of India
India-US trade: Merchandise exports to Washington up 16.9%; imports dip to $3.62 billion in May
India's merchandise exports to the United States grew by a staggering 16.93% year-on-year in May, reaching $8.83 billion. Imports from the US, on the contrary, dipped 5.76% to $3.62 billion, according to data released by the commerce ministry. The upward trend continued into the April–May period, with exports to the US climbing 21.78% to $17.25 billion. Imports during the same period, however, rose by a sharper 25.8% to $8.87 billion. The US emerged as India's second-largest trading partner during April and May, PTI reported. Despite the US maintaining steep tariffs of 25% on products like steel, aluminium and auto components, officials say India's exposure to these restrictions has been limited so far. Commenting on the impact of high US tariffs on steel, aluminium, and auto parts, special secretary in the department of commerce Rajesh Agrawal said India's steel and aluminium exports to the US are limited, so the effect has been minimal. Auto parts face a uniform duty across all countries, 'we have not seen a big dent,' Agrawal added. However, he cautioned that if the tariffs continue for long or if certain countries receive exemptions, Indian exporters could face challenges. Among other key markets, exports to China also posted strong growth: up 25% in May to $1.64 billion and 18.75% over April–May to $3.04 billion. Imports from China, meanwhile, rose 21.16% in May to $10.31 billion and 24.23% in the two-month period to $20.22 billion. India also saw positive export growth to countries like Singapore, Germany, Australia, Belgium, Korea and Russia in May. However, outbound shipments declined to several other major destinations, including the UAE, the UK, Netherlands, Bangladesh, Saudi Arabia, France, and Brazil. On the import side, India's purchases from Russia, Iraq, Saudi Arabia, Indonesia and Qatar fell in May, while imports from the UAE, Japan, Korea, Singapore and Germany increased. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
16-06-2025
- Business
- The Hindu
Government hopeful to finalise early deal with U.S. by July 9, on track for broader deal by fall
The government is on track and hopeful to complete an initial tranche of the India-US Bilateral Trade Agreement by the deadline of July 9, and a wider first tranche of the Agreement by Fall of this year, according to officials in the Ministry of Commerce and Industry. 'On the India-US BTA, the US team was here in India for six days of negotiations from June 6-11,' Rajesh Agrawal, Special Secretary in the Ministry of Commerce and Industry and Chief Negotiator on India's behalf in the India-U.S. BTA negotiations, said at a press briefing. 'We are progressing towards our target of finalising tranche one by Fall of 2025.' The Fall deadline — which is typically September to November in the U.S. — was first mentioned in a joint statement by Prime Minister Narendra Modi and U.S. President Donald Trump following Mr. Modi's trip to the U.S. in February this year. Regarding an early, abridged tranche of the deal, Commerce Secretary Sunil Berthwal said the government was hopeful of completing it by July 9, after which Mr. Trump's reciprocal tariffs would kick in again. 'We are working out the early tranche, and as you are aware that there is a day, July 9, before that we would like to conclude the early tranche,' Mr. Berthwal said. 'Both the teams are visiting each other. We visited the U.S. twice and the U.S. team has visited India twice, so the progress has been good. We are hopeful that this would be done within the timelines.' On the India-U.K. Free Trade Agreement (FTA), the negotiations for which concluded in early May, Special Secretary in the Ministry of Commerce L. Satya Srinivas said the two sides were on track to complete the legal scrubbing of the text and finalise it in three months since negotiations ended. The India-EU FTA talks, too, were gaining momentum, he said. 'On the EU FTA, there are some tracks that are working this week together, and we have our next round which is scheduled on July 7,' Mr. Srinivas explained. 'The momentum has picked up regarding the EU talks and the frequency of meetings has increased. Earlier we used to have rounds that were spread across a quarter or even more, but now the time period between meetings has reduced.'
Time of India
16-06-2025
- Business
- Time of India
India's exports to US up 16.9c pc, imports dip 5.76 pc in May
India's merchandise exports to the US rose by 16.93 per cent to USD 8.83 billion in May, while imports dipped by 5.76 per cent to USD 3.62 billion during the month, according to the commerce ministry data. During April-May, the country's exports to the US increased by 21.78 per cent to USD 17.25 billion, while imports rose by 25.8 per cent to USD 8.87 billion, the data showed. When asked about the impact of high tariffs imposed by the US on steel, aluminium and auto parts, Special Secretary in the Department of Commerce Rajesh Agrawal said India does not export a lot of steel and aluminium to the US. There is a uniform duty on auto components for all countries, so "we have not seen a big dent" on the sector. But if it will be continued for long, there could be some impact. If some countries will get exemptions from this duty then it may impact Indian players, he added. Live Events The US has imposed 25 per cent tariffs on these products. The US was the second-largest trading partner of India in April-May. China, another major trading partner of India, saw a 25 per cent jump in exports from India to USD 1.64 billion in May and 18.75 per cent growth in April-May to USD 3.04 billion. Imports from the neighbouring country in May rose by 21.16 per cent to USD 10.31 billion while in April-May by 24.23 per cent to USD 20.22 billion. Singapore, Germany, Australia, Belgium, Korea and Russia were also among the countries which saw positive growth in exports from India in May. However, exports to the UAE , the Netherlands, the UK, Bangladesh, Saudi Arabia, South Africa , Italy, France, Malaysia, and Brazil declined in May. On the imports front, inbound shipments in May declined from nations including Russia, Iraq, Saudi Arabia, Indonesia and Qatar. However, imports rose from the UAE, Japan, Korea, Singapore and Germany.
