US may cut tariff to 10-15%, penal duty likely to go: CEA

Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday expressed confidence that India-US tariff discussions would conclude within the next couple of months, with a resolution to both the reciprocal tariff as well as penalty for India's purchase of Russian oil.

- ISHITA AYAN DUTT

He also said the reciprocal tariff could come down to the earlier-anticipated range of 10-15 per cent.

The CEA was speaking at two separate events in Kolkata, organised by business chambers.

"Considering recent developments in the last couple of weeks, I do believe—I have no particular basis to say so and this is my intuition — that the penal tariff will not be there beyond November 30.

Given the recent developments, I do believe there will be a resolution in the next couple of months on the penal tariff and hopefully on the reciprocal tariff also," Nageswaran said at an event organised by the Merchants' Chamber of Commerce and Industry.

On Tuesday, the chief negotiators of India and the US decided to intensify efforts to reach an early conclusion of a "mutually beneficial" trade deal, setting aside recent strains in their bilateral ties.

A phone call from US President Donald Trump to convey birthday greetings to Prime Minister Narendra Modi also indicated a move towards normalisation of relations.