New York– US Treasury Secretary Scott Bessent expressed optimism on Wednesday that India will be the first country to finalize a trade agreement with Washington, citing the relatively straightforward nature of the negotiations.
Speaking to journalists during a closed-door session in Washington, held alongside the Spring Meetings of the International Monetary Fund and the World Bank, Bessent said the trade discussions with India were “very close” to reaching an agreement.
“India has fewer non-tariff barriers, no issues of currency manipulation, and very limited government subsidies,” Bessent noted. “That makes reaching a deal with India much easier.”
According to reports from participants at the meeting, the primary sticking points in the negotiations with India have been centered around high tariffs.
US Vice President J.D. Vance, who visited India this week and held discussions with Prime Minister Narendra Modi, indicated earlier that significant progress had been made toward a trade agreement.
Speaking in Jaipur on Tuesday, Vance announced, “We are especially excited to formally declare that America and India have officially finalized the terms of reference for the trade negotiations.”
“This is a crucial step toward realizing President Donald Trump and Prime Minister Modi’s shared vision,” Vance added, “as it establishes a roadmap toward a comprehensive trade agreement between our two nations. There’s much that America and India can accomplish together.”
Under the framework set by Trump’s administration, India faces a potential 26 percent tariff rate beginning in July under the US reciprocal tariff regime if a deal is not reached. The roadmap aims to prevent this scenario by expediting negotiations.
The Vice President’s office described the ongoing discussions as “an opportunity to forge a new, modern trade agreement focused on promoting job creation and improving citizen well-being in both countries.”
India has already taken measures to address key US concerns, including reducing tariffs on Harley-Davidson motorcycles, bourbon whiskey—both frequently mentioned by Trump—and other goods. Additionally, New Delhi has committed to increasing energy and defense purchases from the US.
Finance Minister Nirmala Sitharaman emphasized the significance of securing a trade deal with Washington during a speech on Monday at Stanford University’s Hoover Institution, a conservative think tank. She highlighted that India had been among the first nations to initiate trade negotiations with the current US administration.
“The United States is India’s largest and most important trading partner, and that fact is well recognized by today’s government in New Delhi,” Sitharaman said.
Addressing members of the Indian diaspora, she expressed confidence that the initial phase of the trade agreement could be concluded by autumn.
“Our largest trading partner is the United States, and it is essential for us to have a formal agreement in place,” she reiterated.
Bilateral trade between the two nations reached $129 billion last year, with India maintaining a trade surplus of $45.7 billion. (Source: IANS)
