Commerce and Industry Minister Piyush Goyal met with US Trade Representative Jamieson Greer on Friday to review the next steps in negotiations for the proposed India-US bilateral trade agreement (BTA). According to The Times of India, the meeting took place on the sidelines of the 14th ministerial conference (MC14) of the World Trade Organisation in Yaounde, Cameroon. The development comes as India and the US have finalised their historic trade deal, with FM Nirmala Sitharaman announcing that a joint statement on the trade deal is expected in the next 4-5 days. This represents a significant milestone in bilateral relations, with both sides having earlier announced a trade deal on February 2, followed by a joint statement on February 7 outlining the contours of the agreement.
The trade deal announcement has sparked a massive rally in Indian markets, with Dalal Street roaring as India-US deal sparks record rally, Nifty jumps 4.8%, Sensex surges. As reported by multiple sources, FM Nirmala Sitharaman hails India-US trade deal, credits PM Modi and Piyush Goyal for the breakthrough. The deal is expected to significantly benefit Indian manufacturers, with FM Sitharaman noting that it's good news for Made-in-India products. The agreement includes India getting duty-free access to US aircraft and aircraft parts under BTA, which is expected to boost India's aerospace sector substantially. Foreign investors will return to Indian stock markets as India-US trade deal done: NSE MD, reflecting renewed confidence in the Indian economy.
The development comes amid ongoing efforts by both countries to finalise an interim trade pact. As reported by The Times of India, India and the US announced that they had finalised a framework for the first phase of the agreement last month, though it is yet to be signed. The two sides had earlier announced a trade deal on February 2, followed by a joint statement on February 7 outlining the contours of the agreement. India and the US have finalised their historic trade deal, marking the end of years of negotiations and providing a framework for enhanced bilateral trade relations.
The tariff structure has undergone significant changes following recent legal developments. According to The Times of India, the US had agreed to reduce tariffs on Indian goods to 18% as part of the framework agreement. However, following the US Supreme Court striking down sweeping tariffs imposed under earlier measures, US President Donald Trump introduced a 10% tariff on all countries for a period of 150 days starting February 24. These developments have prompted a planned meeting between chief negotiators to finalise the legal text of the agreement to be postponed. The new trade deal is expected to provide India with 75% of export items enjoying zero tariff access to the US market, significantly improving competitiveness for Indian manufacturers.
The interim trade agreement timeline has been adjusted due to the new global tariff framework. As reported by The Times of India, an official had earlier indicated that the interim trade agreement would be signed once the new global tariff framework of the US is fully in place. The pact was earlier expected to be signed this month, but the postponement reflects the need for both countries to align their respective tariff policies before finalising the agreement. The joint statement on the trade deal is expected in the next 4-5 days, indicating that implementation is moving rapidly toward completion.
