India and US push for trade deal to slash tariffs by 2025
India and the US are working toward a framework trade deal to ease tariffs on Indian exporters. Negotiations, led by US trade representative Jamieson Greer and Indian officials, aim to resolve key issues before a broader agreement is finalised. Both sides remain in regular discussions, though challenges persist.
Talks between the two nations focus on reciprocal tariffs, including a 25% levy on Indian goods due to the absence of a trade deal with the US. Another 25% tariff on Indian oil imports from Russia is also under review. India has made clear that certain areas—such as its economic sensitivities and unique trade needs—remain non-negotiable.
India views foreign direct investment (FDI) as crucial, treating trade and investment as interconnected priorities. The country remains optimistic about securing a framework deal by 2025, though officials acknowledge that negotiation talks can shift unexpectedly. Parallel discussions are ongoing, with one track dedicated to the framework agreement and another to a full trade pact.
The approach mirrors India’s recent trade deal with the European Free Trade Association (EFTA), which envisions USD 100 billion in foreign investment over time.
A framework deal could reduce tariff burdens on Indian businesses and pave the way for deeper economic ties. The timeline remains flexible, with both nations continuing negotiations throughout 2025. If successful, the agreement would mark a step toward resolving long-standing tariff barriers.
