India and US Forge Ahead with Trade Agreement Negotiations

As India and the United States delve into discussions to shape a bilateral trade agreement, the domestic industry in India is showing a willingness to embrace tariff reductions on certain items. This move comes amidst President Donald Trump's threats of imposing tariffs, signaling a potential shift in trade dynamics between the two nations.

Strategic Concessions on the Table

Commerce and Industry Minister Piyush Goyal is currently in the US, engaging in talks with Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer. The discussions aim to structure a deal within the Fall deadline set by PM Narendra Modi and President Trump. The Indian government's strategy involves lowering duties in specific sectors in exchange for concessions in areas beneficial to India, such as textiles and leather.

Industry Voices and Sector-Specific Requests

The apparel sector has identified over 50 items of interest, suggesting tariff reductions or eliminations. Similarly, the engineering goods sector, a significant part of India's export portfolio, has highlighted 33 items for potential concessions. The gems and jewellery sector proposes slashing import duties on various items to maintain India's dominance in the US market. Amidst these negotiations, the auto components and agricultural sectors remain areas of concern due to high protection levels and potential job losses.