India expects 1st tranche of bilateral trade agreement with US this year: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman has said that India is "actively" engaging with the US on a bilateral trade agreement and "positively", the first tranche of the pact between the two countries is expected to conclude this year.

Speaking on the progress made on tariff-related negotiation and the bilateral trade agreement, the FM, who's on a five-day trip to the US, said India is working with the Trump administration with "keenness", hinting towards the US Vice President JD Vance's ongoing trip to India and the recent visit of the Assistant USTR to the country.

“The keenness with which we are engaging with the US administration, even as I talk, I think the Vice President of the United States of America is in India, he will be engaging with the Prime Minister, hopefully this evening or tomorrow. In between all this, the Assistant USTR had visited India to see the progress or to engage with the negotiating team who is dealing with the tariff-related negotiation and the bilateral trade agreement that we want to sign. In fact, the progress of the agreement or the trade agreement that we are working on, at least a first tranche is something which we hope to conclude positively by the fall this year,” the FM said, during her interaction with the Indian diaspora in San Francisco, USA, on Monday (IST).

Notably, US Vice President JD Vance is on an official visit to India from Monday i.e. April 21 to April 24. He will meet Prime Minister Narendra Modi for an official dinner at 7, Lok Kalyan Marg today.

The FM, meanwhile, said the US is India's biggest trading partner, so apart from the tariff-related matter, such interests also need to be kept in mind. "We are working in order that by fall this year, we should at least have the first phase of the agreement signed,” said the FM.

After her visit to the UK and Austria, the FM is visiting the US and Peru from April 20-25. Apart from her interaction with the Indian diaspora on Monday IST, the FM will deliver a keynote address at Stanford University’s Hoover Institution. The FM is also expected to meet top tech CEOs and fund managers.

Talking about India's role in the global economic order, the FM said the international financial bodies like the IMF and the World Bank recognise that India has the potential to pull the engine of global world trade.

"We, when we say India is the fastest growing economy, and when the IMF or the World Bank recognises that India, because of the growth potential, can be India, China, many other such countries, can be the engine to pull the world trade, which is in the negative or just about positive zoom. They recognise the potential that exists in India," she told the Indian diaspora.

On the threat of a potential recession in some countries, the FM said the high-end diaspora can partner with India on various levels, which will not only benefit India but the US as well. "In this environment, if India is recognised for its potential economic strength that it has, if you high-end achievers in this area see the potential to partner with India, individually or commercially, cooperation to cooperation, you benefit, the US benefits, India benefits, Indian businesses benefit, and together we are going to have to lift the global trade and growth."

Notably, India is also facing high tariffs imposed by the new Trump administration. Like many other countries, the government has also raised concerns regarding the tariffs. On April 9, the day when his broad stroke tariff hike across trading partners worldwide was expected to kick in, Trump pressed a pause button. The White House's latest announcement said the proposed increase in tariffs on all products from around 90 countries, excluding China, will not be applicable for 90 days. He said these countries (which include India) have not retaliated in any way, shape, or form against the United States after he announced the tariff measures against them. All these countries will now be subjected to a ‘base’ reciprocal tariff of 10% during this period.