India's Strategic Patience in US Trade Deal

In the face of Trump's tariffs, India is taking a measured approach to protect its domestic interests in the proposed trade deal with the US. A senior government official emphasized the importance of a balanced and win-win agreement, highlighting India's early start in negotiations as a strategic advantage.

Other countries have suggested bilateral pacts to mitigate the impact of Trump’s tariffs, but India is not rushing into any agreements.

US Pressure and India's Resilience

The US has been pressuring India to reduce tariffs in sensitive sectors. However, India intends to hold its ground, with officials pointing out mutual sensitivities, such as in the peanut butter sector. US Commerce Secretary Howard Lutnick's comments on agriculture not being off the table have been noted, with discussions on quotas and limits still in early stages.

Exploring New Markets and Partnerships

Amidst ongoing trade talks with several countries, including the UK, EU, and Gulf Cooperation Council members, India is cautious about partnerships that might expose it to China's influence. The government believes India's exporters can absorb higher tariffs better than some Asian rivals, with potential to explore markets like the EU where trade rules have been recently eased.

The Commerce Ministry is poised to assist exporters and prevent the diversion of subsidized goods into the Indian market, ensuring the domestic economy remains protected.