India-US trade deal could be signed in 3-4 months: US official says, ‘Only one major step remaining’ | Read here

THE India-US trade deal talks have entered the final stretch, with a senior US official asserting that an agreement could be signed within the next three to four months.

Washington and New Delhi have been working on a trade deal to cut trade barriers and open more business opportunities for companies in both countries.

‘Only Section 301 trade investigations remain’

"The deal... is there. We literally have the paper," the official told Reuters on condition of anonymity.

The only major step remaining, the official said, is for Washington to complete its Section 301 trade investigations, which examine alleged unfair trade practices and can lead to tariffs or other retaliatory measures.

The official said one Section 301 probe covering 60 countries was expected to conclude this week or next. Once that and other ongoing investigations are completed, "we'll start seeing progress, not just in India but in other places," the official added.

Asked when the agreement could be concluded, the official replied: "Maybe another three, four months."

‘Deal would be beneficial to both nations’

Last month, US Ambassador to India Sergio Gor, in a similar note, said that the deal is in the final phase. “Most of this deal is complete. A few items remain on both sides. It's in the last 1 per cent of that deal.”

The US envoy to India was bullish about the bilateral relationship and cited the personal equation between US President Donald Trump and Prime Minister Narendra Modi, which was driving the ties.

He also noted that it would be beneficial to both nations, and it would be sealed after nearly 18 months of talks.

"People ask, Why is this taking so long? We've been at this for a year and a half. To put it into perspective, the European trade deal took 20 years. So no matter what, as long as we beat the European deal, I think we're in good shape. But I'm determined to bring this to a close," he said.

Trump's new tariff

Wednesday's development comes a day after Washington proposed new tariffs of up to 12.5% on dozens of nations, including India, over allegations that they failed to curb trade in goods made with forced labour.

Separately, U.S. President Donald Trump said on Tuesday that generic drugs imported into the United States would remain tariff-free for two years from August 1 before facing tariffs of 100% for a year and 200% thereafter, a move that could affect India's pharmaceutical industry.

India, the largest generic drug exporter to the US, will be heavily impacted by the move.