India hailed trade talks with the United States on Wednesday as a "key step" towards a deal. Indian Commerce Minister Piyush Goyal held two days of talks with visiting US Trade Representative Jamieson Greer in New Delhi.
Goyal stopped short of announcing a breakthrough in remaining differences.
Have India and the US finalized a trade deal?
India and the US have not yet finalized a trade deal, though both sides describe talks as constructive. New Delhi and Washington agreed in February on an initial understanding: the US would cut tariffs from 25 percent to 18 percent, while India would lower duties on industrial and agricultural products. Negotiations have continued since then without a final agreement.
Why have the India-US trade talks dragged on?
Negotiations have dragged since the US Supreme Court struck down much of President Donald Trump's sweeping tariff regime. Talks then became more complicated when Washington launched a probe into unfair trade practices against several countries, including India. These developments added new layers of complexity to an already lengthy process.
An Indian commerce ministry statement said Goyal and Greer held multiple rounds of talks during the visit. It described the visit as a key step in ongoing efforts toward a deal.
How close are India and the US to an interim deal?
Both sides have spoken optimistically about finalizing an interim deal soon. Goyal has insisted that 99 percent of the deal's first tranche is complete. The US Ambassador to India, Sergio Gor, said negotiators were working on the "last one percent."
One sticking point, according to Goyal, is India's need to keep its final tariff rate competitive against regional manufacturing rivals. An Indian commerce ministry official told AFP that New Delhi has also floated a clause allowing both nations to revisit the deal's terms after a fixed period.
