New Delhi: India and the US are closing in on a long-pending trade deal that could slash the current tariffs for Indian exports to 15-16 percent from a punishing 50 percent, according to reports, citing sources.
With energy and agriculture emerging as key cards at the negotiating table, India may agree to gradually reduce its imports of Russian oil, the people cited above said on condition of anonymity. The purchases had prompted a punitive levy of 25 percent on Indian exports, which is over and above the 25% reciprocal tariffs announced in April.
Currently, Russia accounts for about 34 percent of India’s crude imports. About 10 percent (by value) of the country's current oil and gas needs are imported from the US. India may also allow in more non-genetically modified (GM) American corn and soymeal into its markets. Further, it is pushing for a mechanism to revisit tariffs and market access over time in the agreement.
India is reportedly considering increasing the quota for importing non-GM maize from the US, even though the duty on these imports will remain unchanged at 15 percent. The current quota of American corn imports is 0.5 million tonnes annually.
New Delhi is likely to consider the US request to allow greater market access for American corn in response to rising domestic demand from poultry feed, dairy inputs, and ethanol industries.
From India’s side, the deal is being negotiated by the commerce ministry along with the external affairs ministry and the national security adviser’s office. While both sides have previously announced and missed deadlines, the Indian side is aiming for a November conclusion, said the reports.
