Indo-US trade talks on track; ASEAN deal may be sealed by October

India aims to finalise a limited deal with the US by August 2025; ASEAN FTA upgrade in active discussion

July 18, 2025

A fifth round of talks is currently underway in the US, following four rounds held since March

India aims to conclude a limited trade deal with the US by 1 August 2025, when the reciprocal tariff deadline ends

Revised US reciprocal tariff rates for other countries are in the 25–40% range, but India’s revised tariff is yet to be announced

India’s exports to the US rose 22% in April–June despite a 10% reciprocal tariff, while imports from the US grew by 12%

The Indo-US trade negotiations are progressing as planned, with both nations adhering to the framework agreed upon earlier this year, according to senior officials in India’s Ministry of Commerce. A team of Indian negotiators is currently in the US for the fifth round of discussions on the proposed bilateral trade deal.

The first round of talks took place during a US delegation’s visit to India in late March. Terms of reference for the negotiations were finalised then, and discussions have continued since. Indian officials travelled to the US for two further rounds in April and May. In June, a US team returned to India for the fourth round of talks.

Commerce Secretary-designate Rajesh Agrawal, who is leading the negotiations, confirmed this timeline and said the process is unfolding as anticipated. However, he declined to comment on specific details of the discussions.

India is targeting August 1, 2025, to conclude a limited trade deal with the US. This timeline aligns with the expiration of the extended implementation period for reciprocal tariffs. The US has already announced revised reciprocal tariff rates for around two dozen countries, ranging from 25% to 40%, but has yet to declare new tariff rates for India.

Despite the 10% reciprocal tariff currently imposed by the US, India’s exports to the country grew by 22% in the April–June quarter, according to commerce ministry data released on Tuesday. Imports from the US also increased by 12% during the same period.

A senior commerce ministry official explained that apart from the baseline 10% tariff, no additional tariff applies to most countries exporting to the US—except China, which faces a 40% tariff. In this context, the official noted, the relative impact of the tariff on India’s exports has been limited.

In parallel, negotiations for an upgraded trade agreement with the ASEAN bloc are gaining momentum. Officials expect to finalise the deal by October, with the 10th and 11th rounds of talks scheduled for August in New Delhi and October in Malaysia.

Rajesh Agrawal stated that although the progress so far has been uneven, discussions are advancing, particularly in areas such as customs and trade facilitation. India is keen to revise the existing Free Trade Agreement with ASEAN in response to longstanding industry concerns that the current deal is tilted against Indian interests.

Source: New Indian Express

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