India’s Chief Economic Advisor V Anant Nagswaran said that he hoped that the United States will soon withdraw the punitive fees levied on Indian goods and relaxed mutual charges in the coming weeks, expecting exporters affected by higher fees. Speaking at an event in New Delhi, Nagswaran said that 25% of the punitive fees levied by Washington in August could be withdrawn by the end of November. I am confident that punitive fees will not be applicable after 30 November. This is not a solid signal or proof -based statement, but I hope that in view of recent developments, I am confident that a solution will come out at punitive fees in the next few months and hopefully mutual fees will also apply.
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The CEA indicated that the mutual fee, which is currently 25%, can be reduced to 10–15%. He further stated that the overall tariff dispute may resolve in the next 8-10 weeks, although he stressed that this is his personal assessment and is not based on any formal assurance. The comment came only a few days after India’s Chief Trade Dialogue, Special Secretary of the Ministry of Commerce, Rajesh Aggarwal, a few days after Brendon Lynch met American trade representative for South and Central Asia in New Delhi. This was the first face-to-face meeting since the Trump administration announced a huge additional fee on Indian exports last month, citing India’s continuous energy trade with Russia.
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Some Indian products have been charged up to 50% due to dual-level tariff arrangements, causing the margin of exporters of labor-dominated areas such as textile, engineering goods and some food products. Analysts say that partial withdrawal in fees may also reduce cost pressure and restore reliability in bilateral trade. Although New Delhi is trying to solve a solution through dialogue, officials believe that the US domestic political calculations can also affect the results. Nagswaran suggested that the government is hopeful, but it is preparing for many scenarios.