India’s Principal Economic Advisor, V. Ananth Nageswaran, has offered reassuring news to the Indian industry. On Thursday, he expressed optimism that the ongoing tariff dispute between India and the United States could be resolved within the next 8 to 10 weeks. It is worth noting that US President Donald Trump imposed a 50 percent tariff on India. Nageswaran made this statement while addressing a session organised by the India Chamber of Commerce. The Principal Economic Advisor explained that high-level talks are underway to resolve this issue between India and the US. He believes positive outcomes could emerge in the near future. Nageswaran stated, “I anticipate that a solution to the additional duties imposed on products from India to the US could be found within the next eight to ten weeks.”
He also mentioned that discussions are ongoing between the two countries regarding reciprocal tariffs. Currently, a total of up to 50% duty is levied on some Indian products in the US, of which 25% is an additional duty imposed due to the purchase of crude oil from Russia. The government aims to reduce this tariff to 15%, enabling Indian exporters to gain a competitive edge in the international market.
Regarding a question about the recent talks between Prime Minister Narendra Modi and US President Donald Trump, Nageswaran stated that he expects a swift resolution to the tariff dispute. Speaking to news agency IANS, he said: “Negotiations are progressing, and I am confident that a solution will be found in the near future.”
Meanwhile, negotiations on a bilateral trade agreement (BTA) between India and the US have intensified. This week, a team from the US Trade Representative’s office, led by Brendan Lynch, visited India.
This US delegation held in-depth discussions with Indian officials, led by Rajesh Agrawal, Special Secretary in the Ministry of Commerce, on issues related to the trade agreement.
A statement released by the Ministry of Commerce stated that both sides understand the importance of trade relations between India and the US. Therefore, discussions on all aspects of the trade agreement have been positive and forward-looking. According to sources, discussions are ongoing at multiple levels regarding tariffs and other trade issues, and a convergence of views is now evident between the two countries.
If the negotiations are successful, Indian industries could receive significant tariff relief, boosting exports and injecting new energy into India-US trade relations. Market analysts also believe that a major decision in this direction could emerge in the coming weeks, strengthening the economic ties between the two countries.
