India optimistic of clinching 1st tranche of US trade pact by year-end: Commerce Secretary

New Delhi, Nov 28 (IANS) India is hopeful of clinching the first tranche of the bilateral trade agreement (BTA) with the United States by the end of this year as most issues have already been resolved, Commerce Secretary Rajesh Agrawal said on Friday.

According to Agrawal, the country is "optimistic of finding a solution within this calendar year" and "there are areas which are non-negotiable for India".

In his address at the FICCI’s 98th AGM and annual convention here, the Commerce Secretary said they had a commitment to see the first tranche is complete by the fall of 2025, and things have moved a lot since then. He stated that the ministry is engaged with the US for the BTA and is also engaged in protracted negotiations related to reciprocal tariffs.

New Delhi is negotiating two deals with the US -- one for a trade deal and the other to address additional reciprocal tariffs imposed by the US. The trade pact regarding tariff-related issues will cover both the 25 per cent reciprocal tariffs and the 25 per cent oil tariffs.

"Engaged in discussions over protracted trade deal framework to address reciprocal tariff issues with the US," he added.

Agrawal said that the trade deal will be beneficial for Indian exports when higher US tariffs are removed.

India’s exports to the US have increased, Agrawal informed the Parliamentary Standing Committee on Thursday. He said that the two countries have been holding regular virtual rounds of talks on the BTA, and the first stage of India-US trade talks is progressing swiftly.

President Donald Trump earlier sent positive signals on strengthening US-India relations, raising fresh hopes that a bilateral trade agreement between the world’s two largest democracies could be signed soon. Trump said that he plans to "lower tariffs" imposed on India "at some point", indicating that a breakthrough in the trade talks could come soon.

--IANS

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