New York– US Treasury Secretary Scott Bessent expects India to be the first nation to finalize a trade agreement with Washington, citing simpler issues and fewer obstacles in negotiations.
Speaking to journalists during the Spring Meetings of the International Monetary Fund and the World Bank, Bessent said trade talks with India were “very close” to reaching an agreement. “India has fewer non-tariff trade barriers, no currency manipulation, and minimal government subsidies, so reaching a deal with them is much easier,” he remarked.
The primary issue in negotiations has been India’s high tariffs, according to reports from the closed-door meeting.
US Vice President J.D. Vance, currently in India, also signaled significant progress after meeting with Prime Minister Narendra Modi. Speaking in Jaipur on Tuesday, Vance announced, “America and India have officially finalized the terms of reference for trade negotiations,” calling it a key step toward realizing the shared vision of President Donald Trump and Prime Minister Modi.
The agreement lays the groundwork for India to avoid a 26 percent tariff Trump plans to impose in July under his reciprocal tariff policy if no deal is reached.
The Vice President’s office described the negotiations as an opportunity to create a modern trade agreement aimed at boosting job creation and citizen welfare in both nations.
India has already taken steps to reduce tariffs on American goods like Harley-Davidson motorcycles and bourbon whiskey, items frequently highlighted by Trump. New Delhi has also committed to increasing energy and defense purchases from the US.
Indian Finance Minister Nirmala Sitharaman emphasized the importance of the trade deal during a recent speech at Stanford University’s Hoover Institution. “The United States is India’s largest trading partner, and that importance is well recognized by the current Indian government,” she said.
At a meeting with the Indian diaspora, Sitharaman expressed optimism that the initial phase of the trade agreement could be completed by autumn.
Last year, bilateral trade between India and the US reached $129 billion, with India enjoying a trade surplus of $45.7 billion. (Source: IANS)
