Chief Economic Advisor V Anantha Nageswaran on Thursday said he expects that a solution to the tariff issues with the US is likely to be arrived in the next eight to ten weeks.
The additional 25 per cent tariff imposed by the US on Indian products for the country's purchases of Russian oil came into effect in August, bringing the total amount of levy on New Delhi to 50 per cent.
Speaking at an interactive session organised by Bharat Chamber of Commerce here, he said, "Underneath the surface, conversations are going on between the two governments. My hunch is that in the next eight to ten weeks, we will likely see a solution to the penal tariff imposed by the US on Indian goods." India's exports to the US stood at $85 billion.
A US delegation led by Brendan Lynch, assistant US trade representative for South and Central Asia, met Indian trade officials headed by Chief Negotiator Rajesh Agrawal in New Delhi on Tuesday.
"It was decided to intensify efforts to achieve early conclusion of a mutually beneficial Trade Agreement," India’s commerce ministry said in a statement, also without giving details.
Talks covered bilateral trade ties, including a possible India-US trade deal, it added.
Both sides are now expected to hold a formal sixth round of trade negotiations.
Trump last month imposed a 25 per cent punitive levy on Indian imports from August 27, doubling overall tariffs to 50 per cent, as part of Washington’s pressure campaign on Moscow over its invasion of Ukraine.
A planned US delegation visit to New Delhi from August 25 to 29 was cancelled after talks stalled, with India resisting US demands to open its vast farm and dairy markets.
India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July, trade ministry data showed on Monday.
Exporters have warned the full impact of higher tariffs would be felt from September, once the new duties took effect.
After negotiations began in February, India and the US had expected to finalise the first part of the bilateral trade agreement by the fall of this year. Five rounds have already taken place, but the sixth, which was scheduled to be held between August 25 and 29, was postponed.
