By Atmadip Ray

Copyright indiatimes

CEA Nageswaran

Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday expressed confidence that the tariff dispute between India and the United States may be resolved within the next two months with the penal tariffs likely to be withdrawn. Nageswaran also indicated that talks are underway to reduce the reciprocal tariff from 25 per cent to about 15 per cent, sparking optimism for exporters.Speaking at an event organised by Merchant Chamber of Commerce & Industry, the CEA said, “I do believe the penal tariff will not be there after Nov 30.””I have no insider information but my personal feeling is we will see resulotions in case of the extra 25% penal tariff,” the CEA said earlier at a session organised by the Bharat Chamber of Commerce.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.”Live EventsHe also said that resolution of this matter is important not only in the trade point of view but also in terms of capital formation.India-US talks progressingThe tariff issue gained urgency after Washington imposed a 25 per cent levy in August 2025 on certain Indian exports with a penalty of 25 per cent citing New Delhi’s purchase of Russian oil. This raised the total tariff burden to 50 per cent, reviving memories of the Trump-era trade tensions when the US had first moved against Indian products in 2018–19.India’s exports to the US stood at $86.51 billion in FY25, making it New Delhi’s largest market.However, a positive development came after a team led by Brendan Lynch, Chief Negotiator for the India-US Bilateral Trade Agreement at the Office of the United States Trade Representative, visited India on September 16, 2025, reviving stalled talks. Discussions with the Department of Commerce were described as “positive and forward looking,” with both sides agreeing to intensify efforts for an early trade deal.Economy outlookOn the domestic front, Nageswaran said the Indian economy is on track to sustain growth momentum. “The first quarter growth has a carry forward momentum. I expect second-quarter GDP growth to be around 7 per cent,” he said.Beating estimates and marking a five-quarter high, India’s Gross Domestic Product (GDP) grew 7.8% in the April-June quarter of FY26. The growth in manufacturing, services and agriculture will contribute to economic progress in a great way in the next two years, Nageswaran said, adding that consumption and investments will continue to anchor growth for the country. According to him, the debt-to-GDP ratio in India is good. With per USD of debt, the country generated more GDP than other countries, which shows efficient utilisation of capital in the economy.Add as a Reliable and Trusted News Source Add Now!
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Read More News onTrump tariffsUS import duties on Indian goodstariff dispute resolutionCEA Anantha NageswaranMerchant Chamber of Commerce & IndustryBharat Chamber of CommerceDepartment of Commerceanantha nageswaranReciprocal Tariff

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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onTrump tariffsUS import duties on Indian goodstariff dispute resolutionCEA Anantha NageswaranMerchant Chamber of Commerce & IndustryBharat Chamber of CommerceDepartment of Commerceanantha nageswaranReciprocal Tariff(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

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