As negotiations between India and the United States intensify, Washington has pushed for the immediate elimination of tariffs on several key goods ahead of a potential bilateral trade agreement. The demand comes as both countries approach the final stages of a long-awaited deal expected to reshape their economic relationship.
According to sources familiar with the talks, the US wants India to withdraw import duties upfront, particularly on items such as medical devices, tech products, and select agricultural goods. The Biden administration believes such measures are crucial for ensuring market access and fair trade practices.
India’s Position
India, however, is treading cautiously. New Delhi has sought a phased reduction approach, especially for sensitive sectors like dairy, electronics, and farm produce, where tariff protection supports domestic livelihoods. Indian negotiators have emphasized the need to balance global trade expectations with local industry interests.
The disagreement over tariff timelines has emerged as one of the last major sticking points in finalizing the deal. While both nations agree on the broader benefits of expanded trade, India remains firm on protecting sectors vulnerable to foreign competition.
What’s at Stake?
A successful pact could:
Boost bilateral trade volumes, already nearing $200 billion.
Enhance supply chain resilience in strategic sectors.
Open new avenues for investment, tech exchange, and services collaboration.
India Advocacy Insight:
Businesses involved in cross-border trade should prepare for potential regulatory shifts. The proposed deal may impact import-export duties, compliance norms, and licensing procedures. Our international trade experts at India Advocacy can help companies navigate the evolving policy landscape and stay deal-ready.
Stay informed. Stay compliant.
