Hopeful of framework trade deal with US this year: Comm Secy

India is hopeful of reaching a framework trade deal with the US this year itself that should address the tariff issue to the benefit of Indian exporters, Commerce Secretary Rajesh Agrawal said on Friday.
Both countries have been in negotiations for a long time, and the first tranche of a bilateral trade deal was expected by the fall of 2025, but the Trump administration’s imposition of tariffs on Indian exports has created hurdles.While noting that the Bilateral Trade Agreement (BTA) will take time, Agrawal said India is engaged in protracted negotiations with the US on a framework trade deal that will address the reciprocal tariff challenge faced by Indian exporters today.
“These are two separate parallel negotiations going on, but one will feed into the other. What needs to come first is the framework trade deal, which will be able to address reciprocal tariffs,” he said.India and the US are having two parallel negotiations — one on a framework trade deal to address tariffs and another on a comprehensive trade deal.
Without providing a specific timeline for the framework deal, Agrawal said, “all I can say is that we are close, we have tried to iron out most of the issues. Now, it is only a matter of time the decision has to be taken when the two countries have to find the right landing zone to announce the deal”.He was participating in a panel discussion during the 98th Annual General Meeting and Annual Convention of industry body Ficci in the national capital.At the negotiators’ level, things are in a zone where something can be achieved in a short time, as there isn’t much to negotiate. There are very few issues, and “a political call needs to be taken”.
When asked whether the framework deal could happen in 2025, he said the government is “hopeful”.
“Our expectations... we are very optimistic, we are very hopeful that we should find a solution within this calendar year, but as you know, with any trade negotiations... if there is one sticking point even in the mind of one of the partners, the trade deal may not meet that deadline,” Agrawal said.
Negotiators from both sides are engaged in talks on a regular basis.The commerce secretary said the trade deal will be beneficial for Indian exports only when both the 25 per cent tariffs are addressed.
He was referring to the 25 per cent tariff imposed on India for not having a trade deal with the US and another 25 per cent tariff slapped on the country for buying Russian oil.“Things have changed and moved a lot from February 13 onwards. When we got into the BTA negotiations, we were on the path to a good, aspirational first tranche by the fall of 2025, but in between, we have seen a lot of changes in the global trade landscape,” the secretary said.
Amid persisting differences in India-US trade talks, he stressed that the country has always stood for its sensitivities and uniqueness.
“So, there are areas which are non-negotiables from our perspective, and I think countries that have negotiated deals with us are very clear about what the things are that India is not open to negotiating,” he added.
He also said that India stresses Foreign Direct Investment (FDI) in trade deals as trade and investments are two sides of the same coin.In this context, the secretary said that India-EFTA trade envisages foreign investment worth USD 100 billion over time.