New Delhi:India and the United States (US) are in the final stages of finalizing the details of their trade deal, which is expected to be concluded “very soon”, ushering in a new phase in bilateral relations, Foreign Minister S Jaishankar said on Thursday as he wrapped up a visit to Washington, days after the two sides announced a deal to reduce US tariffs on Indian goods.
Secretary of State Marco Rubio with Secretary of State S Jaishankar (@DrSJaishankar X)Jaishankar, who was in the US for a critical minerals ministerial meeting and discussed trade and economic cooperation with Treasury Secretary Scott Besant and Secretary of State Marco Rubio, said the matter was being handled by Commerce Minister Piyush Goyal and he did not have details on the timeframe of the trade deal.
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“Concluded a fruitful and positive visit to the US… The historic India-US trade agreement is in the final stages of detailing which will be completed very soon. This opens a new phase in our bilateral relations, with great potential for relations,” Jaishankar said in a social media post.
“Our critical minerals cooperation is also progressing rapidly. Expect engagement on strategic issues, defense and energy in the coming days. Overall, a strong momentum is evident,” he said, pointing to a thaw in bilateral relations after months of unprecedented pressure on trade-related issues.
In New Delhi, External Affairs Ministry spokesperson Randhir Jaiswal told a weekly media briefing that the US side has clarified that the final figure for tariffs on Indian goods is 18%. He referred to both sides’ statements after Prime Minister Narendra Modi’s phone conversation with US President Donald Trump on Monday and said the prime minister had mentioned that Indian goods would be exported to the US at a reduced tariff of 18%.
“This trade deal, as we see it, will give a big boost to our exports to the US. It will be a big boost to labor-intensive industries here in India, creating new job opportunities, growth and prosperity for our people,” Jaiswal said.
People familiar with the matter said the 18% reduced tariff would be implemented after formalities are completed and the two sides finalize the deal, which will be the first step in a bilateral trade agreement.
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During his meeting with Besant, Jaishankar discussed ways to advance bilateral economic partnership and strategic cooperation, while talks with Rubio focused on cooperation in trade, energy and nuclear, defence, critical minerals and technology. Jaishankar said on social media that the two sides have agreed to an initial meeting on various processes to advance shared interests.
Sources also said it was unlikely that Indian tariffs on US goods would go to zero and the Indian side had ensured adequate safeguards in sensitive sectors like agriculture and dairy.
Contacts between the two sides, including the meeting of US Ambassador Sergio Gore in New Delhi, indicate efforts to stabilize relations and advance strategic partnership in various areas.
