India, US Rush to Finalize Mini Trade Deal in 48 Hours
India and the United States have embarked on intensive discussions aimed at securing a mini trade agreement within the next 48 hours. The fast-tracked talks, taking place in Washington, aim to unlock stalled trade talks and address market access concerns ahead of the next round of comprehensive negotiations later this year.
Negotiations Accelerate Amid Trade Deadlock
Indian and American trade officials are convening in capital cities on both sides, focusing on immediate deliverables—primarily market access for select goods and enhanced cooperation on agriculture, dairy, and medical devices. Sources suggest difficult discussions are underway on reducing specific U.S. tariffs on Indian exports like textiles and clothing, in exchange for easier entry for U.S. agricultural goods into Indian markets.
Focus on Short-Term Gains
Rather than a full-fledged comprehensive trade deal, the “mini pact” concept is being favoured. Officials are targeting targeted tariff reliefs and sectoral agreements that can be implemented swiftly. Potential areas include:
- Tariff reductions or removal for Indian exports, particularly in textiles, leather, and pharmaceuticals.
- Enhanced access for U.S. farmers in systems like apples, almonds, and poultry.
- Streamlining regulatory approvals for medical devices and renewable energy components.
The pact aims to build momentum and trust ahead of broader negotiations resuming later in 2025, under either a ministerial-level or joint working group engagement.
Political and Economic Implications
For India, securing U.S. market access would offer a boost to export sectors struggling with global headwinds. It aligns well with “Make in India” export ambitions. For the U.S., improved access to high-quality Indian goods supports decoupling supply chains and mitigating tariff disputes.
By focusing on sectoral resolutions, both governments hope to reset bilateral economic engagement before moving to more contentious issues like data flows, rules of origin, and investment frameworks.
What Comes Next?
Officials plan to finalize the text in the coming days, followed by a signing ceremony at a senior ministerial meeting in Washington. While still subject to internal reviews in Delhi and further technical vetting in Washington, both sides appear committed to the accelerated timeline.
Should the agreement materialize, it could serve as a precursor to larger trade negotiations and signal renewed strategic cooperation between Washington and New Delhi—before the end of the year.
