NITI Aayog CEO BVR Subrahmanyam on Monday exuded confidence that a trade agreement would be concluded between India and the US soon, as both countries are committed to having a mutually beneficial bilateral trade pact. Subrahmanyam also said that India should lower tariffs and non-tariff barriers and open its markets to improve competitiveness in manufacturing.

"So the good thing is, both sides are still committed to having a trade deal. So negotiations happened last month, so I think both sides are hopeful," he told reporters while launching 'Trade Watch Quarterly' here. The ties between New Delhi and Washington have come under severe stress after US President Donald Trump doubled tariffs on Indian goods in August to 50%.

Asked to comment on the impact of a whopping 50% tariffs on Indian goods, Subrahmanyam said, "Building a trade channel is difficult, and unwinding a trade channel is also difficult. No impact will happen till Christmas."  The NITI Aayog CEO, however, noted that 'summer' is going to be an issue if both countries do not settle the trade deal.

‘India must deepen trade with China, other Asian nations’

India's trade deficit remains manageable and can be expanded, if necessary, NITI Aayog Chief Executive Officer B.V.R. Subrahmanyam said Monday. However, if India wants to improve its share in the global export market, it should integrate its trade with Asian nations more deeply, particularly China, Subrahmanyam said.