Trade deal talks between India and America have been stalled for a long time. The US not only halted trade deal negotiations but also imposed a 25% tariff on India, followed by another 25% tariff on buying Russian oil. President Donald Trump imposed a huge tariff on India totaling 50%. Since then, trade deal talks have stalled. America is setting conditions for this deal. Now India has presented its final proposal.
India’s last proposal to America
America has repeatedly postponed the trade deal. Now India has given its final proposal on this deal to the Trump administration. India is not going to be misled in negotiating a trade deal with America. India has made it clear that the tariff imposed on it should be reduced from 50% to 15%. Additionally, the additional 25% tariff imposed on purchases of Russian oil should be completely removed.
India has sent its last offer to America for India-US trade deal. It demands that America’s tariff be reduced from 50% to 15% and the 25% tariff on Russian oil be completely eliminated. India has presented its proposal for a Bilateral Trade Agreement (BTA) between the two countries. India has made it clear that the purpose of this deal is to promote trade and remove the additional burden on oil imports. Bangladesh is rebelling against the very country that created it; If India wants, it can end the game without weapons, just by pressing a button.
Who will benefit by how much?
India’s Commerce Secretary Rajesh Aggarwal said a framework agreement could be agreed upon soon. He said that he hoped America would accept his demands. He expressed hope that the trade deal between India and America will be agreed upon and finalized by January 2026. If America accepts India’s demands, Indian goods will become cheaper there. Indian companies will get new orders from America, employment will increase in India and the economy will be strengthened by the increasing flow of dollars.
India’s plans with Russia
While on one hand efforts are being made to finalize the trade deal with America, on the other hand talks for a Free Trade Agreement (FTA) with Russia have intensified. Negotiations between India and the Eurasian Economic Union (EAEU) are progressing rapidly. The Eurasian Economic Union includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. If this free trade deal is finalized, there will be a significant increase in trade between India and the Eurasian Economic Union.
india-russia deal
The friendship between India and Russia is well known. Trade between the two countries is set to reach a record $68.7 billion in the 2024-25 financial year. The goal is to increase this to $100 billion by 2030. Now, both countries are moving towards a free trade agreement. The first round of meetings between the two countries took place recently. Commerce and Industry Minister Piyush Goyal also said that India and the Russia-led Eurasian Economic Union are moving ahead with a free trade agreement. If this deal is finalized, it will be a big blow to America.
Shock to America
America is troubled by the friendship between Russia and India. US imposed additional 25 percent tariff on Russian oil purchases by India. Restrictions were imposed on the export of Russian goods. Russian oil companies were banned. The US has used tariffs on many countries, including India, as a strategy to force them to make trade deals on its terms. In this context, a free trade agreement between India and Russia could prove to be the biggest blow to America.
