New Delhi4 minutes ago
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India has presented its final proposal to America in trade talks. India wants the total 50% tariff imposed on it to be reduced to 15% and the extra 25% penalty imposed on buying crude oil from Russia should be completely eliminated. It is hoped that from the ongoing talks between the two countries, a concrete decision can be taken in the new year.
A comprehensive bilateral trade agreement (BTA) is under negotiation between the two countries, but officials believe it is difficult to complete it by the end of this year. Now the hope is in January, when new trade data will come and talks may gain momentum.
This week a meeting was held in Delhi between the trade teams of India and America. The talks are taking place on two issues. First on a large and permanent trade agreement and second on a framework agreement to remove or reduce the 50% tariff imposed on India by the US.
25% tariff due to buying Russian oil
America has imposed a total tariff of 50% on India. Of this, it calls 25% ‘reciprocal (tit for tat) tariffs’. Whereas 25% has been imposed due to purchase of Russian oil. America says that this is helping Russia to continue the Ukraine war. India says that this penalty is wrong and it should be removed immediately.
Commerce Secretary Rajesh Aggarwal has expressed confidence about the framework agreement and said that it can be agreed upon soon, although he did not give any fixed deadline.
According to people associated with the talks, the chances of completing this agreement in 2025 are now decreasing, because there is very little time left for the end of the year.
According to sources, negotiations on the framework agreement were completed around Diwali, but now a formal announcement is awaited from the US, especially President Donald Trump. Regarding the reason for the delay, officials are directly pointing to the White House and the President’s decision.
There may be a decline in Russian oil purchases
There is also a reason for hope that the data coming in January may show a big decline in India’s Russian oil imports. US sanctions have come into effect on Russia’s two big oil companies Rosneft and Lukoil from November 21. After this, India’s oil import from Russia has started decreasing.
According to Reuters report, India’s Russian oil imports were about 17.7 lakh barrels per day in November, which has come down to about 12 lakh barrels per day in December.
In the coming time it may go below 10 lakh barrels per day. After the Ukraine war, India became Russia’s largest oil buyer, which has been questioned many times by the Trump administration.
US officials had alleged that India was indirectly funding the attacks on Ukraine by buying oil from Russia.
India wants relief like EU
Now India is trying to reduce the remaining 25% tariff to 15%, so that India gets the same relief that the European Union (EU) is getting. If the tariff is higher than this, Indian exporters will suffer losses compared to other countries.
For example, the US tariff on Indonesia was earlier 32%, which has been reduced to 19%. India clearly says that it should also get relief at the same level.
India has given a clear message to America, the penalty on Russian oil should be abolished and the total tariff should be reduced to 15%. Now the ball is in America’s court and all eyes are on President Trump’s decision.
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