Speaking to ANI, Aghi said that although negotiations on the proposed India-US trade agreement have been underway for some time, he would not speculate on when the deal could be concluded.
Also read: India engaged with US for negotiating trade pact, govt tells Rajya Sabha
He said, “We have been talking about this for some time, so I would not jump in and predict that it’s going to close in a month or whatever it is. But one thing is, with or without the trade deal, the trade between the two countries is going up. The investment from Indian companies in the US is going up.”
He noted that American companies continue to deepen their presence in India through Global Capability Centres (GCCs), saying nearly 60 per cent of these centres are American and are developing high-end products to improve global competitiveness.
Aghi said, “You can see the Global Capability Centres- almost 60% are American, and they are innovating high-end products for the US companies so they can be efficient and effective and competitive in the global world. So if a trade deal happens, great, but without the trade deal, the economic partnership continues between the two countries.”
His remarks come as on July 22, US Secretary of State Marco Rubio and External Affairs Minister S Jaishankar held talks in Manila focusing on the urgency of finalising an interim bilateral trade deal.According to a US State Department office readout attributed to Spokesperson Tommy Pigott, the two leaders discussed advancing bilateral commitments made during talks between US President Donald Trump and Prime Minister Narendra Modi last year.
Trade was a key area of discussion, with Rubio and Jaishankar underscoring the need to conclude an interim bilateral trade arrangement. “The Secretary and Minister Jaishankar agreed on the importance of finalising the interim trade deal, which is almost complete,” the readout added.
Commenting on the US decision to impose a 10 per cent tariff on goods imported from India over the issue of forced labour, Aghi said the final rate was lower than initially proposed after India addressed the concerns.
He said, “Initially it was going to be 12.5 per cent, and then India certified that it does not have that clause, and made it into a legal verdict itself. So what we are seeing is that India’s tariff is now 10 per cent, as compared to other countries, which is at 12.5 per cent. It is, I would say, better than 18 per cent, which they were talking about.”
He noted that tariffs ultimately increase costs for American consumers and stressed that India is seeking preferential tariff treatement to remain competitive with neighbouring countries.
Aghi said, “But at the end of the day, tariffs–who pays for it? It is going to be the American consumer. So I think India’s position is: give us preferential tariffs so we can be more competitive against the neighbouring countries themselves.
Also read: US Sec 301 tariffs unlikely to hit India’s exports, textiles need close watch, says FIEO chief
On Thursday (local time), the United States unveiled fresh tariff slabs of 10 and 12.5 per cent on several economies under its Section 301. India has been placed in the lower 10 per cent tariff category. Officials told that while New Delhi was initially slated for a 12.5 per cent tariff, it secured the lower rate following productive discussions on labour practices.
This came as the Office of the US Trade Representative (USTR) on the same day announced tariffs ranging from 10 per cent to 12.5 per cent on 60 economies as part of action directed by US President Donald Trump over what it described as inadequate measures to prohibit the import of goods produced with “forced labour”.