Indo-American Trade Deal: Energy, Agriculture and Tariff; What will happen in ‘very big’ treaty
New Delhi: The business talks between India and the US back on the track, as President Donald Trump indicated that the “huge” agreement with India would soon be upcoming. In a presser at the White House, Trump said, “Everyone wants to make a deal and is a part of it. Remember a few months ago, the press was saying, ‘Do you really have any interest? Well, we signed with China yesterday. We are doing some great deals. One is coming to us, perhaps with India. huge. Where we are going to open India, in the deal of China, we are starting to open China. ,“We are not going to deal with everyone. Some we are just going to send them a letter, thank you very much. You want to pay 25, 35, 45 percent. This is an easy way to do, and my people do not want to do it in this way. They want to do some of it, but they want to do more deals than as I will do, “he said.
Effect on agriculture, tariff and energy
Trade relations between India and the United States are expected to change a lot, reduce tariffs, which can make products more competitive in the US, especially in energy, agriculture, defense and aviation sectors. According to the Month Economic Review of the Ministry of Finance, BTA may benefit American exporters, given India’s high average tariff than the US.The US implemented 26% mutual tariff on Indian products in April 2025, but suspended it for 90 days from 10 April, maintaining 10% basic duty. Bilateral discussion has accelerated, showing adequate progress in digital trade, market access, customs processes and technical standards. An provisional agreement can be reached before July 9, as India wants complete discount from anti -counterfeit tariffs.The India-US trade fiscal reached $ 131.84 billion in FY25, which was established as India’s primary trading partner. Crisil suggests that when American imports in the US may increase under BTA, Indian exports can see limited benefits, as many major exports already enjoy duty-free access in the US market.India’s growing energy requirements, especially for LNG, can create a beneficial partnership with American suppliers. Crisil highlighted the benefits of LNG in value stability and long -term contract suitability on crude oil. Agricultural imports from the US may increase, including walnuts, pistachios, and cranberries, although widespread access is disputed.The defense sector offers important development opportunities. Despite focusing India’s focus on domestic defense production, it remains a major weapon importer. The US, as the world’s leading arms exporter, has strengthened defense cooperation with India, including the Indus-X programs launched in 2023.Although India’s trade surplus may face pressure, identifies the ability of development in labor-intensive industries such as Crisil Textile, Gems and Jewelry, such as with high-value areas such as smartphones and pharmaceuticals. The BTA talks include several regions, both nations have considered it an important step towards increased economic partnership.Prime Minister Narendra Modi and Trump arrived at an agreement in February, to finalize the initial stage of a bilateral trade deal by autumn 2025, plans to increase trade by 2030 by 2030, from about £ 191 billion in 2024.India continues to progress in its conversation with the European Union for a free trade agreement later this year, and has recently completed the discussion for FTA with the United Kingdom. The purpose of these initiatives is to diversify trade participation in anticipation of potential American policy changes under Trump.Ram Singh said, “The ball is now in the US court. India is not for any win-defeat trade partnership.”Data suggests that India’s exports to the US increased to $ 17.25 billion during April-May, compared to $ 14.17 billion in the previous year, indicate that the US tariff average increases by 10% in early April.
