India-US trade talks show progress, no major differences: Government sources

Government sources have indicated that India's trade delegation is on its way back from the US after talks with the American government officials.

With both the negotiating teams having been engaged positively, sources told CNBC-TV18 that progress has been made in all discussions and there are "no major differences" between both the sides. India's Chief Negotiator Rajesh Agrawal had gone to the US earlier this week where discussions were underway on bilateral commitments.

Despite 50% tariffs imposed on imports by the United States, India's exports to the US rose to $45.82 billion in the 1st half of the current FY, 13.3% more than $40.42 billion in same period last year.

Earlier this week, the Commerce Ministry has said that India would like to diversify its energy import portfolio, subject to availability at the right price, stating that India can import more crude oil and natural gas worth $12-$13 billion from the US without altering configuration of refineries.

On the India-US trade talks, the Commerce Ministry had said that the US is in a shutdown and with a reduced workforce, the time isn't right for a full-fledged negotiation. Stating that "there is lot of noise in the air" on engagement between both the sides, the Commerce Ministry said that it was heartening to see exports keep pace during global turbulence, with the industry maintaining business relations and supply chains and even absorbing costs. US Ambassador designate to India had recently met India's top leadership.

The Commerce Ministry said that the impact of tariffs on India-US trade will be studied based on commodity-wise data, with an almost certain impact on sectors facing 50% tariffs, adding that October's trade data will give a firmer picture. The Ministry indicated that while India is still doing better in exports to the US compared to the previous year, there are parts of supply chains fighting challenges to trade.