USISPF welcomes the India-US trade deal announced by Trump and Modi. It reduces a reciprocal tariff and is the first step towards a comprehensive Bilateral Trade Agreement, aiming to boost bilateral trade to the USD 500 billion target.
The US-India Strategic Partnership Forum (USISPF) has welcomed the announcement of an India-US trade deal, stating that the agreement between the two nations would deliver meaningful benefits for businesses, workers, and consumers in both countries.
In an official statement released on Tuesday, the USISPF said it enthusiastically welcomed President Donald J. Trump's announcement following his conversation with Prime Minister Narendra Modi, which reaffirmed their shared commitment to deepen the US-India economic partnership and advance a bilateral trade agreement.
A Positive Step Towards a Comprehensive Agreement
It stated, "The reduction of India's reciprocal tariff from 25 per cent to 18 per cent marks an important and positive first step. While the agreement's specifics are pending, today's announcement signals strong political will on both sides to move toward a comprehensive U.S.-India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors".
According to the statement, the proposed BTA is expected to address key areas such as tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors. The forum noted that such an agreement would help strengthen supply chains and enhance economic resilience in both nations.
Future Negotiations and Outlook
The USISPF further stated that both governments have made it clear that this announcement is only the beginning, with additional phases and negotiations anticipated in the months ahead. The forum expressed encouragement over the constructive momentum generated by the announcement and said it remains optimistic about the scope and ambition of the proposed agreement.
Commitment to $500 Billion Trade Target
Reiterating its commitment, the USISPF said it would continue to work closely with both the Government of India and the US Government to advance the shared objective of expanding bilateral trade towards the USD 500 billion target. The forum added that a stronger US-India trade and investment relationship is not only critical for both economies but also central to advancing a stable, resilient, and rules-based Indo-Pacific.
Key Tariff Adjustments Announced
Following the announcement by US President Donald Trump and PM Narendra Modi on February 2, the reciprocal tariff by the US on India was reduced to 18 per cent from 25 per cent, while the additional 25 per cent punitive levy linked to India's purchase of Russian oil has been removed. (ANI)
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