India-US trade deal back in focus: Indian delegation to visit Washington next week for talks

In February, the two countries had announced that they had finalised the framework for the first phase of their bilateral trade pact. (AI image)

India-US trade deal update: Months after India and the US announced an interim trade agreement that reduces tariffs on India to 18%, an official Indian delegation is set to travel to Washington next week for discussions with US authorities, a government source said on Wednesday.According to a PTI source, the visit is scheduled for next week. The agreement had originally been expected to be signed in March, but developments in the Donald Trump tariff regime following a ruling by the Supreme Court of the United States have changed the circumstances.In this light, the talks between trade representatives of India and the United States are seen as particularly significant. Officials had earlier indicated that the deal would be concluded only after clarity emerges on the revised tariff structure in the United States.In February, the two countries had announced that they had finalised the framework for the first phase of their bilateral trade pact. As part of this understanding, the US had agreed to bring down tariffs on Indian goods to 18 per cent.However, the tariff environment in the US shifted after the court struck down sweeping reciprocal tariffs introduced by President Donald Trump. Subsequently, the US administration imposed a uniform 10 per cent tariff on imports from all countries for a period of 150 days starting February 24.Amid these changes, a planned meeting between the chief negotiators from both sides was deferred last month. The two countries had been scheduled to meet in February to finalise the legal text of the agreement.At the time the framework was agreed, India enjoyed a relative advantage over competing nations. That edge has since narrowed, as all US trading partners are now subject to the same 10 per cent tariff.The upcoming talks will also be crucial in the context of two ongoing investigations initiated by the Office of the United States Trade Representative under Section 301.On March 12, the USTR launched a probe covering around 60 economies, including India and China. The investigation aims to assess whether policies or practices related to the enforcement of bans on goods produced using forced labour are unreasonable or discriminatory, or whether they restrict US trade.A day earlier, on March 11, the USTR had initiated another Section 301 investigation focusing on the policies and industrial practices of 16 economies, including India and China.