<p>New Delhi: India and the United States are likely to have a trade deal in the next two months under which the 25 per cent penal tariff on Indian exports is likely to be scrapped and the 25% reciprocal tariff to be lowered to 10-15 per cent, Chief Economic Adviser V Anantha Nageswaran said on Thursday.</p><p>“My personal confidence is that in the next couple of months, if not earlier, we will see a resolution to at least the extra penal tariff of 25 per cent. It may also be the case that the reciprocal tariff may come down to the level, which we were earlier anticipating, somewhere between 10-15 per cent,” Nageswaran said at an event in Kolkata.</p><p>He said the “conversations are going on between the two governments” on the proposed trade deal.</p><p>Trade officials from India and the US met in New Delhi on Tuesday to restart the negotiation on the bilateral trade agreement after nearly two months of pause due to diplomatic tension following the imposition of 50% tariff by the Donald Trump administration.</p>.Donald Trump says without tariffs US would only have a fraction of current investment .<p>At present, the 50 per cent tariff imposed by the US on Indian goods is among the highest. This has made the Indian goods uncompetitive in the American market, badly hitting exporters, especially in labour-intensive sectors like textiles and gems and jewellery.</p><p>The US tariffs include 25 per cent so-called reciprocal tariff and 25 per cent additional tariff as penalty for New Delhi’s purchase of Russian oil. “I do believe that the penal tariffs will not be there beyond November 30,” Nageswaran said.</p><p>However, he clarified that his statements were not “based on any concrete indicator or evidence”. “It is my hope that, given the recent developments, I do believe there will be a resolution in the next couple of months on the penal tariff and hopefully, reciprocal tariff also,” he remarked. The hope of an India-US trade deal and the reduction in interest rate by the US Federal Reserve have boosted investor sentiments. The Indian stock markets’ key indices jumped for the third consecutive day on Thursday with the 30-stock Sensex closing 320 points higher while Nifty gained 93 points. </p>
<p>New Delhi: India and the United States are likely to have a trade deal in the next two months under which the 25 per cent penal tariff on Indian exports is likely to be scrapped and the 25% reciprocal tariff to be lowered to 10-15 per cent, Chief Economic Adviser V Anantha Nageswaran said on Thursday.</p><p>“My personal confidence is that in the next couple of months, if not earlier, we will see a resolution to at least the extra penal tariff of 25 per cent. It may also be the case that the reciprocal tariff may come down to the level, which we were earlier anticipating, somewhere between 10-15 per cent,” Nageswaran said at an event in Kolkata.</p><p>He said the “conversations are going on between the two governments” on the proposed trade deal.</p><p>Trade officials from India and the US met in New Delhi on Tuesday to restart the negotiation on the bilateral trade agreement after nearly two months of pause due to diplomatic tension following the imposition of 50% tariff by the Donald Trump administration.</p>.Donald Trump says without tariffs US would only have a fraction of current investment .<p>At present, the 50 per cent tariff imposed by the US on Indian goods is among the highest. This has made the Indian goods uncompetitive in the American market, badly hitting exporters, especially in labour-intensive sectors like textiles and gems and jewellery.</p><p>The US tariffs include 25 per cent so-called reciprocal tariff and 25 per cent additional tariff as penalty for New Delhi’s purchase of Russian oil. “I do believe that the penal tariffs will not be there beyond November 30,” Nageswaran said.</p><p>However, he clarified that his statements were not “based on any concrete indicator or evidence”. “It is my hope that, given the recent developments, I do believe there will be a resolution in the next couple of months on the penal tariff and hopefully, reciprocal tariff also,” he remarked. The hope of an India-US trade deal and the reduction in interest rate by the US Federal Reserve have boosted investor sentiments. The Indian stock markets’ key indices jumped for the third consecutive day on Thursday with the 30-stock Sensex closing 320 points higher while Nifty gained 93 points. </p>