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Informist, Thursday, Jan. 15, 2026

 

--Trade secy: India-US trade deal likely soon, can't give timeline 
--Trade secy: India-US engaging online for trade deal 
--Trade secy: Both India, US optimistic about trade deal 
--Trade secy: Buying US crude oil, all traditional suppliers in West Asia 
--Trade secy: Most India exports to Iran humanitarian, looking into matter

 

NEW DELHI – India and the US are likely to sign the much-awaited bilateral free trade agreement soon, Commerce Secretary Rajesh Agarwal said Thursday, without giving a timeline. Both countries are optimistic about the deal and are engaging online for it, Agarwal said. 

 

India and the US have held several rounds of discussions but have not been able strike a balance between Washington and New Delhi's demands, including differences over opening up India's sensitive farm sector. Recent remarks by US officials have also given mixed signals on the trajectory of the trade negotiations.

 

US Commerce Secretary Howard Lutnick cast doubt on the deal's prospects last week. Lutnick said the agreement failed to materialise because Prime Minister Narendra Modi did not speak to US President Donald Trump in time. Lutnick had said that India agreed to the US offer three weeks after the train had already left. Meanwhile, India has maintained its stance that the trade talks are progressing. 

 

Indian goods currently attract a 50% tariff in the US, including a 25% punitive tariff, due to India's economic relationship with Russia, particularly oil and defence equipment procurement from Moscow. Currently, India is procuring oil from the US and all other traditional suppliers in West Asia, Agarwal clarified Thursday. 

 

So far, Indian exports to the US have held up despite steep duties, rising 9.8% on year to $65.88 billion in Apr–Dec. But in the absence of a trade deal, India may face duties of up to 500% if the US Congress enacts the bipartisan sanctions bill targeting Russia and its trading partners. 

 

Besides, Trump has also announced another 25% tariff on countries trading with Iran, after a communications shutdown imposed by Iranian authorities isolated citizens amid nationwide protests that began in December over economic and political issues, including record-high inflation and poor governance. Iran's crackdown on protesters has resulted in hundreds of deaths.

 

Although limited, India maintains trade relations with Iran. India's total trade with Iran in 2024-25 (Apr-Mar) was $1.68 billion, including $1.24 billion in exports, primarily from the farm sector. According to Agarwal, India's trade with Iran is humanitarian in nature, and the government is currently looking into the matter.  End

 

US$1 = INR 90.30

 

Reported by Priyasmita Dutta and Krity Ambey

Edited by Saji George Titus

 

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