With ongoing talks for a bilateral commerce settlement, India is hoping for a reprieve from the reciprocal tariffs on imports that the US is ready to impose from April 2.
Official talks between India and the US on the proposed bilateral commerce settlement began on Wednesday with senior officers from each international locations sitting down on the desk to start discussions on the contours of the commerce deal together with timelines and the phrases of reference. The 2 international locations hope to finalise the primary tranche of the settlement by fall of 2025.
Based on sources, India has already indicated merchandise on which it’s prepared to decrease tariffs. These embrace a spread of merchandise from the US together with cars similar to EVs, bikes and wines and alcohol in addition to sure farm produce from the US.
Sources stated India stays hopeful that the preliminary provide in addition to the continuing negotiations will give some reprieve from the reciprocal tariffs that US President Donald Trump plans to impose from subsequent month.
A workforce of officers from the US led by Assistant US Commerce Consultant for South and Central Asia Brendan Lynch, together with a workforce of US authorities officers, are visiting India from March 25-29.
“As directed by the leaders of the 2 international locations, India stays dedicated to working with the US aspect within the commerce and financial domains to boost prosperity and innovation in each India and the US, and deepen provide chain integration between the 2 international locations. We look ahead to productive and constructive discussions with the incoming US delegation to increase and deepen our bilateral commerce and financial ties in a mutually useful method,” the ministry of commerce and business had stated in a press release forward of the go to.
Following Prime Minister Narendra Modi’s go to to Washington DC to satisfy the US President, the 2 international locations have agreed to work on the BTA and deepen bilateral commerce to $500 billion by 2030.
A report by Emkay World Monetary Providers stated India may doubtlessly lose about $6 billion (0.16% GDP) in exports to the US (at 10% broad tariffs), with this rising to about $31 billion at 25% tariffs.
“Whereas the character of reciprocal tariff implementation is unclear, we imagine a broad country-level tariff by the US is the almost definitely state of affairs, given issues round sector/commodity-level tariffs,” it stated. Whereas India might be among the many worst hit nations as per broad reciprocal differentials, the important thing prone sectors of auto, pharma, electronics are much better positioned than feared, whereas attire and gems and jewelry are probably the most uncovered.
India’s complete exports to US in FY24 stood at $77.5bn (2.1% of GDP); the prone sectors the report recognized comprise about 1.1% of GDP.
