India-US Trade Deal: India aims to restore its export status to pre-April 2 levels, particularly in labor-intensive sectors, as part of a bilateral trade agreement with the US. In exchange, India seeks concessions on American imports, including agricultural products. Negotiations are progressing well, with the goal of finalizing an interim deal before July 08. This deal will address goods, non-tariff barriers, and certain service areas like digital. India is pushing to eliminate the 26% additional duty and the 10% baseline tariff. Tariff Suspension And Challenges Although reciprocal tariffs were suspended for 90 days, the 10% baseline duty remains, impacting export competitiveness. A comprehensive trade agreement covering 85-90% of products from both sides, known as “substantial coverage,” is contingent on the US administration receiving congressional approval to lower tariffs below the most-favored nation rates. Despite the challenges, the US can remove reciprocal tariffs on countries, including India. Commerce and Industry Minister Piyush Goyal, along with Indian negotiators, is currently in the US for detailed discussions on the bilateral trade agreement endorsed by President Trump and Prime Minister Narendra Modi, with expectations to finalize by fall (Sept-Oct). Initially, an “early tranche” was sought before the 90-day tariff suspension ends, but talks have been positive. Priority Sectors And US Demands India seeks duty concessions for labor-intensive sectors like textiles, leather goods, gems and jewelry, plastics, chemicals, shrimp, oil seeds, and certain fruits. The US is requesting duty reductions for automobiles, particularly electric vehicles like Tesla, as well as whiskey, wine, petrochemicals, dairy, and genetically modified farm goods.