India-US Trade Deal Marks Historic Step Toward Full FTA
Historic India-US trade pact marks first step toward a full free trade agreement, says ex-ambassador Juster.
Former US Ambassador to India Kenneth I. Juster on Tuesday described the recently announced India-US trade understanding as “historic,” calling it the first agreement of this scale between New Delhi and Washington. Speaking exclusively to NDTV, Juster emphasized that while the deal still needs to be formalized in writing, the political commitment by both leaders represents a critical breakthrough in bilateral economic ties.
Juster highlighted that unlike prior announcements with other partners, this understanding contains “substantive provisions” negotiated by both sides, giving it “real content and meat.” Key measures include the removal of 25% punitive tariffs and a reduction of reciprocal tariffs from 25% to 18%, addressing a long-standing trade irritant in the relationship.
On sensitive issues such as India’s Russian oil imports, Juster noted that India had already been reducing purchases due to market conditions. He called this a positive development that could contribute to broader geopolitical stability, including momentum toward a potential peace settlement in the Russia-Ukraine conflict.
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The former envoy linked the trade breakthrough to India’s wider strategic partnerships, including defence, technology, energy, and space cooperation. He argued that resolving trade tensions would strengthen the overall US-India strategic partnership and could energize regional initiatives such as the Quad, especially if India hosts a leaders’ summit later this year.
Juster also touched on the China angle, noting that India now enjoys one of Asia’s lowest tariff levels at 18%. He suggested that further negotiations toward a full free trade agreement could reduce tariffs further, though sensitive sectors such as agriculture and dairy would require careful handling in future rounds.
Concluding, Juster described the announcement not as an endpoint but as a foundational first step toward a comprehensive India-US free trade agreement. He called it a win-win opportunity that would integrate India further into global supply chains while deepening the strategic and economic partnership between the two nations.
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