The deal shifts the US posture towards India from hostile to neutral, and that matters for growth, points out T T Ram Mohan.
A trade deal makes sense only if it is fair and reciprocal. If the cost is strategic dependence or loss of policy space, waiting is the wiser option, asserts Ajay Srivastava.
The turning point came with the appointment of Sergio Gor as the US ambassador to India.
The Congress attacked the Modi government, saying it now seems to be routine that India learns about its government's actions only from Trump or his appointees.
The United States and India are on the verge of finalising a landmark bilateral trade deal, aiming to boost trade to USD 500 billion by 2030, according to US Deputy Assistant Secretary of State Bethany Poulos Morrison. The agreement seeks to open India's 1.4 billion-strong market to American goods on reciprocal terms, with ongoing high-level discussions to recalibrate the pact after recent changes in US tariff policy.
Several farmer organisations in India are protesting the proposed India-US trade deal, expressing concerns about its impact on the agriculture sector and demanding the resignation of the Commerce Minister.
'As far as the contentious issues such as agriculture are concerned, we are finding some common ground.'
'There are very few issues and a political call needs to be taken about some of them.'
The India-US trade deal has offered a much-needed breather for the Indian information technology (IT) industry, which has been grappling with global macroeconomic uncertainty and subdued client spending over the past few years.
Stock market benchmark indices Sensex and Nifty surged in early trading session on Tuesday after India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from current 25 per cent.
India and the United States have reviewed progress on a proposed interim bilateral trade agreement, discussing market access, digital trade, and non-tariff barriers, as they race to finalise a deal before a temporary 10 per cent US tariff regime expires on July 24.
Rahul Gandhi met with farm union leaders to discuss concerns about the India-US trade deal and its potential impact on farmers' livelihoods.
India and the US have decided to reschedule their meeting to finalize the interim trade pact due to recent developments and implications, including changes in US tariffs.
The first phase of the proposed India-US bilateral trade agreement (BTA) is 'nearing closure' and would address the hefty 50 per cent tariffs imposed by the Trump administration on Indian goods, in addition to resolving America's market access issues, a government official said on Monday.
Prime Minister Narendra Modi and US President Donald Trump are set to hold comprehensive talks focusing on a bilateral trade deal, defence cooperation, and energy and critical minerals sectors during the G7 summit in Evian-les-Bains, France.
Commerce and Industry Minister Piyush Goyal announced that an interim trade agreement between India and the US is likely to be signed in March and operationalised in April, with chief negotiators meeting in Washington to finalize the details.
India has completely protected the interests of its agriculture and dairy sector in the India-US trade agreement.
The commerce ministry on Tuesday said the discussions with visiting US Chief Negotiator Brendan Lynch on the proposed bilateral trade agreement were positive and forward looking.
'Based on the joint statement, a formal agreement will be drafted, which may take a month or month-and-a-half to finalise. We aim to sign the formal agreement by mid-March.'
India and the United States are committed to finalising an interim trade agreement, despite recent challenges including the US imposing a blanket 10 per cent surcharge and India's decision to wait for a new global tariff architecture. The US Trade Representative's annual report highlights India's maintained high import tariffs and various non-tariff barriers across several sectors.
United States President Donald Trump on Wednesday said he has great respect for his 'friend' Prime Minister Narendra Modi and they are going to have a good trade deal, according to a media report.
'We are now awaiting a response from the US; they have to get back to us.'
'I don't think we should ever negotiate with deadlines or hard stops because we tend to make mistakes then.'
'A deal will only be possible if India stops buying Russian oil -- but even then, New Delhi must not compromise its core red lines.'
Congress leader Jairam Ramesh raised the issue of the Indo-US trade deal soon after the zero hour ended and alleged that the information about the deal was being received from Washington instead.
US Secretary of State Marco Rubio says relations between India and the US have not lost momentum and are set to strengthen, with hopes for a trade deal soon.
US Commerce Secretary Howard Lutnick claims a trade deal with India failed because Prime Minister Narendra Modi did not call then-President Donald Trump, despite requests.
After three consecutive months of heavy selling, foreign portfolio investors (FPIs) turned net buyers in the first week of February, infusing more than Rs 8,100 crore in Indian equities, aided by improving risk sentiment, along with a trade deal with the US.
Bajaj Finance, IndusInd Bank, State Bank of India, Maruti, Tata Motors, ITC, Tata Steel and Reliance Industries were also among the gainers. Nestle, NTPC, Kotak Mahindra Bank, Power Grid and Titan were among the laggards.
Hectic parleys are underway between officials of India and the US in Washington on the proposed interim trade agreement between the two countries, an official said on Wednesday.
Secretary of Commerce Howard Lutnick has said one should expect a trade deal between India and the US in the "not-too-distant future" as the two countries have found a place that works for them. "So the idea is when they put the right person and India put the right person on the other side of the table, and we've managed, I think, to be in a very, very good place," Lutnick said in his keynote address at the eighth edition of the US-India Strategic Partnership Forum (USISPF) Leadership Summit in Washington on Monday.
India and the US have reported positive progress in recent trade talks in Washington, agreeing to maintain engagement to finalise a bilateral trade agreement, which now requires recalibration following new US tariffs.
New Delhi will substantially reduce tariffs on industrial and agricultural goods while continuing to protect sensitive sectors. Tariffs on some agricultural products that are not traditionally considered sensitive will be brought down to zero, while in the case of relatively sensitive items, duties will be reduced in a graded manner and quotas will be imposed.
Prime Minister Narendra Modi and US President Donald Trump discussed enhancing economic ties and a potential trade deal during a phone conversation.
After the US Supreme Court struck down President Donald Trump's global tariffs, Congress leader Rahul Gandhi accused Prime Minister Narendra Modi of being "compromised", saying his "betrayal" in the India-US interim trade deal stood exposed.
The India-US ties witnessed a major downturn after President Trump slapped a whopping 50 per cent tariff on Indian goods, including a 25 per cent punitive levy over Russian oil purchases.
'Trade deal will act as a strong trigger for market sentiment, not just for domestic investors but also for FIIs.'
Indian benchmark indices Sensex and Nifty rebounded in early trade, recovering from previous losses, driven by softening crude oil prices and renewed buying interest in blue-chip stocks. Analysts note that the fall in Brent crude below USD 77 has removed significant macro headwinds for India, contributing to market stability.
Modi highlights the potential for large-scale employment generation for women and youngsters.
While both sides have announced the decision to restart talks for a trade deal, government officials said discussions are continuing virtually.
