India-US Trade Deal in Final Stage, Tariffs Set to Be Cut
India and the United States are close to finalising a bilateral trade agreement expected by the end of November. As part of the proposed framework, India is likely to allow duty-free imports of US soybeans, corn and select dairy products. In return, the US is preparing to roll back recently imposed penalty tariffs and revise reciprocal rates on several industrial and agricultural products.
Why the Deal Matters
The negotiations follow months of tariff disputes, with Washington criticising India’s market restrictions and Delhi opposing US duties on steel, aluminium and other exports. Increased access for US agricultural products, particularly soybeans and corn, aligns with American goals of expanding farm exports. India, meanwhile, aims to secure tariff relief for its goods and reduce friction in broader economic ties.
However, domestic concerns persist. Indian farmer groups and dairy cooperatives have warned that opening the market to US farm goods could hit local producers.
Next Steps
Officials say the agreement could be announced before the end of November if both sides finalise the tariff schedule. Implementation will be key, with monitoring mechanisms expected to ensure that sensitive sectors are protected. The deal is likely to be framed as a strategic step to stabilise and expand trade between the world’s two largest democracies.
