The United States may decrease 25 % of India’s penalty, and reduce customs tariffs to 10-15 % amid commercial talks, says CEA

The chief economist V. Anantha Nageswaran said on Thursday, indicating that progress in commercial talks may reduce pressure on Indian exports of $ 50 billion.

Speaking at an event in Colkata, Nageswran said he expected a decision within 8 to 10 weeks. “My personal confidence is that in the next two months, if not previously, we will see at least a decision of the 25 % additional collective tariff,” adding that the mutual Indian tariff may occur “somewhere between 10 % and 15 %.”

The duties of sanctions were part of a 50 % wider tariff package imposed by the White House in August, in response to India imports of Russian crude oil. Since then, the two governments have intensified diplomatic channels.

“Under the surface, a lot of conversation occurred between the two governments,” said Nageswaran.

Earlier this week, the chief trading negotiator in India, Rajash Agrouwal, met in person with Brendan Lynch, the American commercial representative of South and Central Asia, in New Delhi – the first direct meeting since the definitions entered.

Currently, about 55 % of the export basket in India to the United States is subject to a higher tariff. The most difficult sectors of textiles, chemicals, seafood, gemstones, jewelry, and medium ingredients for the intense export economy in India. In August, exports to the United States fell to the lowest level in 10 months at 6.87 billion dollars.

The United States is still the largest export market in India, representing 20 % of external charges. In the fiscal year 2024-25 (April – March), India has exported 86.51 billion dollars from goods to the United States and maintained a trade surplus of 40.82 billion dollars.

The decline in punitive definitions would provide a great comfort for Indian exporters and distinguish a re -setting in bilateral trade relations after months of economic friction.