India and the United States continue to witness steady growth in their economic partnership despite the absence of a formal bilateral trade agreement. US-India Strategic Partnership Forum (USISPF) President and CEO Mukesh Aghi emphasised that trade and investment flows are expanding, with Indian companies increasing their footprint in the United States and American firms deepening their presence in India.

Aghi explained that negotiations on the proposed trade deal have been ongoing for some time, but he refrained from predicting when it might be concluded. He stressed that trade between the two countries is rising regardless of the agreement, and investments from Indian companies in the US are also increasing.

He highlighted the role of Global Capability Centres (GCCs), noting that nearly 60 per cent of these centres are American-owned and are producing high-end products to enhance global competitiveness.

He remarked that the GCCs are innovating advanced solutions for US companies, enabling them to be more efficient and competitive worldwide. He added that while a trade deal would be welcome, the economic partnership is already strong and continues to grow without it.

His comments followed discussions held on 22 July in Manila between US Secretary of State Marco Rubio and Indian External Affairs Minister S Jaishankar. The talks focused on the urgency of finalising an interim bilateral trade deal.

According to a US State Department readout, both leaders reaffirmed commitments made during earlier discussions between President Donald Trump and Prime Minister Narendra Modi, stressing the importance of concluding the interim arrangement, which is reportedly close to completion.

Aghi also addressed the recent US decision to impose a 10 per cent tariff on goods imported from India under Section 301 measures related to forced labour concerns. He explained that the rate was initially proposed at 12.5 per cent but was reduced after India certified that such practices were not present, securing a legal verdict to that effect. He noted that India’s tariff rate is now lower than that of several other countries, which face 12.5 per cent, and significantly better than the 18 per cent rate initially discussed.

He pointed out that tariffs ultimately increase costs for American consumers, stressing that India is seeking preferential tariff treatment to remain competitive against neighbouring countries.

He argued that the burden of tariffs falls on consumers in the United States, and India’s position is to secure favourable rates to ensure its competitiveness in the region.

On 23 July, the United States announced new tariff slabs of 10 and 12.5 per cent on 60 economies as part of measures directed by President Trump to counter goods produced with forced labour. India was placed in the lower 10 per cent category following productive discussions on labour practices.

Officials confirmed that India had initially been slated for the higher 12.5 per cent tariff but successfully negotiated the reduction.

The Office of the US Trade Representative (USTR) confirmed that these tariffs were part of broader action to ensure compliance with labour standards. The decision reflects ongoing efforts by both governments to balance trade expansion with regulatory safeguards, while continuing to push forward negotiations on the interim trade deal.

ANI