In a significant development for U.S.-India trade relations, India’s Chief Economic Adviser V. Anantha Nageswaran has expressed optimism that the U.S. may soon eliminate the punitive 25% import tariff on Indian goods and reduce reciprocal tariffs to 10-15%. Speaking at an event in Kolkata on Thursday, Nageswaran stated, ‘My personal confidence is that in the next couple of months, if not earlier, we will see a resolution to at least the extra penal tariff of 25%.’ He further suggested that the reciprocal tariff of 25% could also be lowered to levels previously anticipated between 10% and 15%. This announcement follows ‘positive’ and ‘forward-looking’ trade discussions between the two nations earlier this week. The talks aimed to address tensions that escalated after former U.S. President Donald Trump imposed punitive tariffs on India for purchasing Russian oil, doubling overall tariffs to 50% in August. Trump and Indian Prime Minister Narendra Modi recently held a phone conversation, during which Trump thanked Modi for his efforts in resolving the Russia-Ukraine conflict. While no specific agreements were disclosed, the call signaled a potential thaw in bilateral relations, which had been strained in recent months. Indian stock markets responded positively to Nageswaran’s comments, with the benchmark Nifty 50 index reaching one-week highs and its highest close since July 9.