India-US trade deal: India and the US continue to be engaged in discussions for finalizing a trade deal, Randhir Jaiswal, official spokesperson of the Ministry of External Affairs said on Thursday.
“India, US bilateral trade that we are engaged in, we continue to remain engaged with the US side to conclude a trade deal, and these discussions are continuing,” he said.
US has imposed 50% tariffs on India, 25% of which are reciprocal tariffs while the other 25% is a penalty for India’s crude oil imports from Russia.
US President
Donald Trump on Wednesday hinted about an imminent trade deal between India and the US.
During his address at an Asia-Pacific conference in South Korea he expressed "great respect and love" for PM Narendra Modi, whilst reiterating his fictionalised narrative about preventing an India-Pakistan conflict through trade negotiations.
“I said I was going to put 250% tariffs on each country, which means that you’ll never do business… there’s nothing you can sell for 250%... and they understood that and within 48 hours we had no war and no people killed. It makes me feel so good. We saved millions and millions of lives.”
According to a TOI report, Trump signalled that the preliminary agreement, which trade representatives from both nations have reportedly finalised, has received his endorsement.
The proposed deal is expected to reduce US tariffs on Indian exports from 50% to 15%. As part of the arrangement, India would decrease its Russian oil imports whilst increasing energy purchases from the United States, the TOI report said.
Meanwhile, India on Thursday said that its crude oil imports are guided by the goal of ensuring energy security through diverse and affordable sources, as it examines the impact of the latest US sanctions on Russian oil majors Lukoil and Rosneft.
External Affairs Ministry spokesperson Randhir Jaiswal made the remarks amid signs that Indian refiners are gradually reducing purchases of discounted Russian crude and turning to petroleum imports from the US.
Additionally, India plans to procure US corn for its expanding bio-fuel initiative that combines ethanol with petrol, along with undisclosed military equipment acquisitions.
Although Trump did not specify the signing date, sources told TOI that it would initially be established as a "framework agreement".
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