India and US Nearing End of Trade Deal Talks, Says S Jaishankar

India and the US are in the final stretch of negotiations for a bilateral trade agreement, External Affairs Minister S Jaishankar said at the Hindustan Times Leadership Summit. He noted that the bulk of the issues have already been sorted out, though he refused to set a fixed timeframe for when the deal will officially close.

Trade Talks And Tariffs

Bilateral trade talks between the two nations began last year after the Trump administration imposed a 50 percent tariff on Indian exports. Negotiations picked up speed earlier this year when both sides reached an understanding to cut tariffs down to 18 percent, a process complicated by the judiciary later scrapping Trump's tariffs. Jaishankar explained that India is going through the details tariff line by tariff line, which takes painstaking effort. New Delhi's main goal is a trade agreement that is beneficial, balanced, and offers a comparative advantage over similar economies.

US Politics And China

Addressing the impact of the US mid-term elections where Democrats won control of the House of Representatives and the Senate, Jaishankar stated that the shift would change many things in the bilateral relationship. However, he noted that areas like defence, security cooperation, and technology enjoy bipartisan support in the US. Turning to relations with China, Jaishankar said India has significantly improved border infrastructure like roads, bridges, tunnels, and airfields along the Line of Actual Control since the June 2020 Galwan Valley clash. That clash resulted in the death of 20 Indian soldiers and at least four Chinese troops, pushing relations to a six-decade low. He also pointed out that India missed major industrialisation opportunities in the 1980s and failed to fully carry through economic reforms in the 1990s, leading to a gap with China in areas like manufacturing and semiconductors, though India has raced ahead in digital capabilities.

Context

Trade negotiations between large global economies typically involve months or years of careful bargaining over individual tariffs and market access. Border infrastructure development in difficult mountain terrain requires long-term capital allocation and sustained logistical support by armed forces.