India's Active Engagement with the US for Trade Agreement

Finance Minister Nirmala Sitharaman announced that India is actively engaging with the new US administration to conclude the first phase of a bilateral trade agreement by fall (Sept-Oct) this year. This move comes as both countries seek to strengthen their economic ties amidst global trade tensions.

High-Level Visits Signal Strong Bilateral Relations

Highlighting the importance of the relationship, Prime Minister Narendra Modi visited the US in February, followed by the commerce and trade minister. Sitharaman herself is in the US for the IMF and World Bank meetings, with plans to meet her counterpart, the US treasury secretary.

Reciprocal Tariffs and the Path Forward

The US had announced reciprocal tariffs on several countries, including India, but suspended them for 90 days until July 9, except for China and Hong Kong. India and the US are working towards a bilateral trade agreement in two phases, with the first phase expected to be signed by October.