The signing of the India-US trade deal has been put on hold until a new tariff framework is in place, according to Commerce Secretary Rajesh Agrawal.
Agrawal stated that the pact will be finalized once Washington restores global tariff rates following a court ruling that struck them down.
India and the US had announced the finalization of a framework for the first phase of their bilateral trade agreement last month, with the US agreeing to lower tariffs on Indian goods to 18 per cent.
However, the tariff structure in the US has since changed following a Supreme Court ruling, and the meeting between the chief negotiators of India and the US has been postponed.
India is currently engaged in talks with Washington on the details of the trade agreement, with the commerce secretary stating that the deal has to be signed against the tariff structure or the comparative advantage that India gets in the US market.
Apart from the US, India is negotiating six Free Trade Agreements (FTAs) with different countries and regional groups as part of efforts to expand trade partnerships.
The US has also launched a trade investigation into alleged unfair manufacturing practices by India and 15 other major economies, which could allow the US government to impose new tariffs, curb imports, or suspend trade agreement concessions.
