New Delhi: India’s Chief Economic Adviser, V. Anantha Nageswaran, on Thursday expressed optimism that the Trump administration may roll back penal tariffs imposed on Indian goods and ease reciprocal duties before 30 November, offering hope of relief for exporters struggling under higher levies.
“I do believe that the penal tariffs will not be there beyond November 30. It’s not a statement based on any concrete indicator or evidence, but it is my hope that, given the recent developments, there will be a resolution in the next couple of months on the penal tariff and hopefully, reciprocal tariff as well,” Nageswaran said while speaking at an event in the national capital.
The Chief Economic Adviser suggested that the reciprocal duty, currently at 25%, might be reduced to a 10–15% range. He added that a complete resolution to the overall tariff dispute could emerge within the next 8–10 weeks, although he emphasised that this was his personal view, not based on any formal assurance.
Nageswaran's comments follow recent diplomatic engagement between India and the US. Just days ago, India’s chief trade negotiator, Commerce Ministry Special Secretary Rajesh Agrawal, met with Brendan Lynch, US Trade Representative for South and Central Asia, in New Delhi. This marked the first in-person meeting since the Trump administration imposed steep additional tariffs on Indian exports last month, citing India’s continued purchases of Russian oil.
Despite the tensions, the United States has described its ongoing trade negotiations with India as “positive.”
So far, five rounds of talks for the India-US Bilateral Trade Agreement (BTA) have been completed. The sixth round, originally scheduled for 25–29 August, was postponed following the announcement of 50% tariffs on select Indian goods by the US.
In a message posted on Truth Social last week, former President Donald Trump said the US and India would resume negotiations to address "trade barriers" between the two countries.
“I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!” Trump said.
In response, Prime Minister Narendra Modi said he “deeply appreciates and fully reciprocates” Trump’s sentiments and positive assessment of bilateral ties. He described the India-US relationship as “forward-looking” and aimed at building a “Comprehensive and Global Strategic Partnership.”
“Deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties. India and the US have a very positive and forward-looking Comprehensive and Global Strategic Partnership," PM Modi said.
