India and US Trade Talks Gain Momentum as Zero-Tariff Buzz Sparks Optimism

A New Chapter in Indo-US Economic Relations

India and the United States are entering a promising phase in their bilateral trade relationship. On May 15, Commerce Secretary Sunil Barthwal confirmed that talks on a proposed trade agreement are progressing steadily. The announcement has sparked renewed interest from both policy watchers and market participants.

High-Level Delegation Heads to Washington

A senior Indian delegation, led by Commerce and Industry Minister Piyush Goyal, is set to travel to Washington, D.C., for the next round of trade negotiations starting May 17. The four-day visit will include meetings with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick.

The immediate focus of these talks is on finalizing an interim trade deal centred around goods. Both nations are aiming to secure early mutual wins, laying the groundwork for a broader and more comprehensive trade agreement expected later this year, possibly by September or October.

Trump’s Zero-Tariff Claim Makes Waves

In an unexpected twist, former US President Donald Trump made headlines during a speech in Qatar, claiming that India has offered zero tariffs on American products under the proposed deal. While Trump did not provide specific details, he positioned the offer as a major breakthrough, especially given India’s traditionally high tariffs.

His remarks come amid news of Apple’s growing investment in India, including plans to manufacture all iPhones sold in the US within India. Trump referenced this shift as a sign of strengthening economic ties.

Market Reacts Positively

Back in India, the stock market reacted with enthusiasm. The Sensex surged by 1,400 points and the Nifty50 crossed the 25,000 marks in intraday trading, fuelled by investor optimism over the potential benefits of a zero-tariff arrangement.

What’s at Stake?

A successful interim trade agreement could benefit multiple sectors, including electronics, agriculture, manufacturing, and pharmaceuticals. It also signals a maturing strategic partnership between two of the world’s largest democracies.

While official responses to Trump’s claims are still pending, the direction of these talks suggests a growing alignment in economic priorities. If successful, this deal could set the tone for a new era of cooperation and mutual growth between India and the United States.

Stay tuned for more updates as negotiations unfold.