India-US Trade Talks Accelerate Ahead of Tariff Deadline; IOB Cuts Lending Rate Slightly

India’s trade diplomacy is gaining momentum as Commerce Minister Piyush Goyal confirmed that negotiations with the United States are progressing rapidly. Meanwhile, Indian Overseas Bank (IOB) has revised its one-year Marginal Cost of Funds-based Lending Rate (MCLR) to 9.00% from 9.10%, effective July 15, signaling a modest easing in borrowing costs.

 

Key highlights from trade negotiations:

 

- A senior Indian delegation is currently in Washington D.C. to finalize the first phase of a bilateral trade agreement before the August 1 tariff deadline.

- Talks are focused on tariff reductions, digital trade norms, and market access for key sectors including agriculture, automobiles, and textiles.

- The US is reportedly considering a tariff rate below 20% for Indian goods, down from the earlier proposed 26%, indicating progress toward a mutually beneficial deal.

- Chief negotiator Rajesh Aggarwal is expected to join the discussions mid-week, with negotiations spanning four days.

 

Strategic context:

- The trade pact is part of the broader US-India COMPACT initiative, aimed at deepening cooperation across defense, technology, and climate.

- Both nations have set a target to boost bilateral trade to $500 billion by 2030.

 

Banking update:

- Indian Overseas Bank’s revised one-year MCLR to 9.00% may offer slight relief to borrowers, especially in retail and MSME segments.

- The rate cut reflects improved liquidity conditions and aligns with broader monetary policy trends.

 

Sources: Times of India, Financial Express, MSN India, Business Standard, Hindustan Times.