India and America may soon sign an interim trade agreement. Commerce and Industry Minister Piyush Goyal has also indicated this. He said on X that there were fruitful talks with the US on the trade agreement. Goyal has been in the US for the last four days. Talks on the agreement are going on between the chief negotiators of the two countries.
According to sources, both the countries want to create an interim arrangement of trade agreement before the completion of the first phase of Bilateral Trade Agreement (BTA). So that the possibility of obstruction in mutual trade which has arisen due to America’s tariff policy can be removed.
The US had imposed a 26 per cent reciprocal tariff on India in April last year, which was deferred for the next 90 days. This 90-day period is ending in the second week of July and both the countries want to make an interim arrangement regarding the duty before that.
India wants zero duty or very low duty from the US on all employment-intensive sectors so that exports from these sectors to the US increase, which will help in increasing manufacturing and employment in India. On the other hand, America wants exemption in duty on electric vehicles, wine, ethanol, many industrial items and some food items. Along with this, America also wants exemption in India’s quality control rules.