India Set to Sign Bilateral Trade Agreement With U.S., Likely to Cut Import Duties on Several Products

New Delhi: India is preparing to retract on its former stance on trade with US as the central government is preparing to sign a bilateral trade agreement with the United states. According to reports, the agreement will be signed by the end of November, and will remove import duties on several US products including soybean, corn, and diary products. US President Donald Trump has confirmed that the two countries will sign the trade agreement at the swearing in ceremony of the new US Ambassador to India, Sergio Gor.

Currently, the US has reduced the additional 50 percent import duties on Indian products, after India agreed to certain conditions. US has reportedly agreed to bring down India's import duties down to below 20 percent. India, however, demanded that the import duties be reduced to below 15 percent, similar to the ones imposed on European Union - a request the US is unlikely to accept.

The central government claims that the import of diary products and grains will be permitted only after considering farmers' interests. The current move of the central government will worsen the ongoing agricultural crisis, as per experts. It is reported that the trade agreement would open the Indian market fully to US businesses.

The final decision on the recommendations submitted by the Indian government will be taken soon by the U.S. administration. The Modi government’s move to drastically cut imports of Russian oil under U.S. pressure and the threat of retaliatory tariffs from Trump have accelerated the push toward this agreement.