India, US team to finalise contours, terms of reference of trade agreement this week: Official

India and the US are set to finalise the contours and terms of reference for a bilateral trade agreement during a three-day discussion starting Tuesday. The focus is on increasing trade predictability and integration, with the first phase of the agreement expected to be completed by fall 2025.

India has imported 8.47 lakh tonnes of DAP fertiliser from China till February this fiscal, representing 19.17% of total imports. China accounted for 40% in the previous fiscal. Despite various challenges, domestic DAP availability has exceeded the requirement for the ongoing rabi season.

International Tractors faces challenges exporting to Mexico and Canada due to US tariffs and plans to shift exports from India instead of Atlanta. ITL, the largest tractor exporter in India, expects a decline in overseas shipments in fiscal 2024-25 due to global trade wars. Major markets like the EU, North America face uncertainties affecting overall […]

India has imposed anti-dumping duties on four Chinese goods—Soft Ferrite Cores, vacuum insulated flasks, aluminium foil, and Trichloro Isocyanuric Acid—to protect domestic industries from cheap imports. These duties range from USD 276 to USD 1,732 per tonne and are set for five years, with aluminium foil subject to a provisional six-month duty.

The government has decided to lift the 20 per cent export duty on onions from April 1 to protect farmers’ interests. This move comes as onion prices have dropped due to the expected arrival of the rabi crop. The export duty was initially imposed in September 2024.

Exporters from SEZs and EOUs can claim benefits under the RoDTEP scheme until February 5, 2025. However, from February 6, exports from these categories will no longer be eligible. The scheme’s extension highlights export challenges as volumes decline, urging the government for a five-year rate announcement.

India and the United States are actively discussing solutions to tariff-related disputes, aiming to formulate a bilateral trade agreement framework. The Ministry of External Affairs in India remains hopeful about reaching an understanding soon, signaling a possible breakthrough in their economic relationship.

India and the US are working towards a bilateral trade agreement, focusing on increasing market access, reducing import duties, and enhancing supply chain integration. The trade in goods and services between the two countries totaled $190.08 billion in 2023.

India may shield its economy from US trade tensions to some extent, but the ultimate impact hinges on trade deal outcomes. Global economic uncertainties have led to currency fluctuations and liquidity challenges, prompting proactive steps by the RBI and the government to sustain economic momentum.