A significant update has emerged about the trade deal between India and the United States. For the past three days, both nations have been discussing various trade-related topics under the leadership of Piyush Goyal. It's anticipated that an agreement on reducing tariffs might be reached soon.
The ongoing discussions in Washington involve Commerce and Industry Minister Piyush Goyal and senior officials, including Special Secretary and India’s chief negotiator, Rajesh Agarwal. According to a report by PTI, discussions are progressing at multiple levels. The minister-led team is expected to return from the U.S. by the end of the week.
This visit follows a one-day discussion in New Delhi between U.S. chief negotiator Brendan Lynch and Agarwal about a proposed bilateral trade agreement. On September 16, the Commerce Ministry announced that the day-long discussions with the visiting U.S. team on the bilateral trade agreement were positive.
Key Discussion Points Between India and the U.S.
The primary topic of discussion in the U.S. is tariffs, with India striving to convince the U.S. to cut tariffs by 50%. Meanwhile, the U.S. is pushing for India to make concessions on agriculture and dairy products. Recent reports suggested the U.S. might soon reduce tariffs to 10%, though no official statement has been made yet.
Russian Oil Debate
The U.S. has imposed an additional 25% tariff on India due to purchases of Russian oil, which India aims to lift. As a result, the U.S. is likely exerting pressure on India to stop buying Russian oil and opt for its more expensive oil instead. However, India remains firm in its stance.
H-1B Visa Issue
Recently, the Trump administration raised H-1B visa fees to $100,000, significantly impacting Indian workers. With the visa fee set at $100,000, new H-1B applicants must now pay approximately 8.8 million rupees. This topic is also expected to be discussed in trade talks, with India advocating for reduced visa fees.
