Chief Economic Adviser anticipates potential reduction of tariffs on Indian goods in coming weeks.
Chief Economic Adviser V Anantha Nageswaran expressed optimism regarding the resolution of the tariff dispute between India and the United States, suggesting that a solution could be reached within the next eight to ten weeks. He conveyed this assessment during an event held in Kolkata, stating that his expectation was based on ongoing discussions between the two governments. Nageswaran described his insights as a personal hunch, emphasizing that he believes significant conversations are taking place beneath the surface.
He highlighted the potential consequences of continued tariffs, indicating that if the current levies remain in place, India’s exports to the US could face a decline. This concern underscores the importance of reaching an agreement to facilitate trade between the two nations. During a subsequent event on the same day, Nageswaran reiterated his hope that the punitive tariffs could possibly be removed by the end of November.
Nageswaran also discussed the possibility of reducing the current reciprocal levy, which stands at 25%. He suggested that this rate might be lowered to a range between 10% and 15%. While these figures reflect his personal assessment, they indicate a potential shift in trade policy that could benefit both countries.
The remarks from Nageswaran come amid a backdrop of strained relations between New Delhi and Washington. The tension has been exacerbated by US President Donald Trump imposing reciprocal tariffs on Indian goods, as well as punitive levies related to the purchase of Russian oil in the context of the ongoing Ukraine conflict. On September 9, Trump expressed his eagerness to engage in discussions with Prime Minister Narendra Modi regarding trade matters in the upcoming weeks. In response, Modi expressed confidence that the trade negotiations could unlock the vast potential of the partnership between the two nations.
In a related development, a delegation led by Brendan Lynch, the chief negotiator for the India-US Bilateral Trade Agreement, recently met with Indian officials in New Delhi. The Ministry of Commerce and Industry characterized the meeting as positive and forward-looking, noting that both parties agreed to intensify efforts toward the early conclusion of a trade agreement. This collaborative approach reflects a shared interest in resolving trade disputes and enhancing economic ties.
As the discussions progress, stakeholders from both sides will be closely monitoring developments. The outcome of these negotiations may have significant implications for bilateral trade dynamics and overall economic relations between India and the United States.
