India-US trade deal to be finalised at ASEAN summit, tariff reductions likely

NEW DELHI: India-US relations, strained over tariffs in the past, are heading for a revival through a trade deal.

The trade deal is likely to materialise soon. Trump is expected to attend the East Asia Summit to be held in Kuala Lumpur, Malaysia, from 26 to 28 this month, on the sidelines of the ASEAN summit. It is reported that the deal will be finalised there.

There are indications that the 50 per cent import duty imposed on Indian products for not complying with Trump's order not to buy oil from Russia will be reduced to 15 to 16 per cent. India may also be ready to reduce its purchases of Russian oil. There will also be a provision to import non-genetically modified corn and soybeans from the United States.

US President Donald Trump had called Prime Minister Narendra Modi on the phone on Wednesday to wish happy Diwali. Trump told reporters in the Oval Office that they discussed a number of issues, mostly trade. PM Modi is purported to have reiterated that India would reduce the purchase of oil from Russia.

PM Modi thanked Trump for the phone call and the Diwali greetings.

“May the two great democracies continue to illuminate the world with hope during the festival of lights. May both countries move forward together against terrorism,” Modi wrote on his Twitter account.

# In August, exports to the US were worth $6.87 billion. It fell to $5.43 billion in September. Exports of textiles, seafood, diamonds and gold jewellery were adversely affected.

#Low exports and a surge in imports are widening the trade deficit. The trade deficit reached a 13-month high of $32.15 billion in September.

#34 per cent of India's oil imports come from Russia. A discount of up to $23 per barrel was given in 2023. But now the discount is $5. This has also caused New Delhi to think twice.

#Only 10 per cent of imports come from the US. This will be increased.

#China used to import $5.2 billion worth of corn from the US. Now it only buys $0.33 billion worth of corn.

Trump plans to export corn to India and maintain income. India is also wheedling US to rethink its approach by exploring new Indian markets and expanding trade.