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India, U.S. Near Trade Pact as Negotiators Draft Legal Text

Outstanding hurdles center on oil‑linked U.S. tariffs plus access for farm goods.

Overview

  • Officials from both sides say talks have largely converged after last week’s Washington round, with legal drafting now underway.
  • India is pressing to remove the 25% punitive duty tied to Russian oil purchases and to bring reciprocal tariffs down toward roughly 15%.
  • The 50% U.S. tariff on several Indian goods has hurt flows, with India’s merchandise exports to the U.S. down 12% year on year in September.
  • Market opening for American agriculture remains sensitive, with reports pointing to potential non‑GMO corn and soymeal entries and opinion voices urging safeguards.
  • Unresolved items include U.S. concerns over Indian quality‑control orders viewed as non‑tariff barriers, the next in‑person round is not scheduled, and the fall 2025 tranche target remains in place.