Deeper cut to duty for US on cards; four to five products specific to US under consideration

The government wants to make sure that the beneficiary products are made in the US. The list could cover four to five products, including certain kinds of electronics, chemicals and plastics, besides aircraft, parachutes and cruise ships. India levies duties of 7.5-10% on these items.

Exempting India from US reciprocal tariffs could promote smooth bilateral trade, say exporters. Despite potential tariffs on Indian products, negotiations for a bilateral trade agreement targeting 2025 are ongoing. However, obtaining exemptions might necessitate significant concessions from India beyond the trade sector, making their receipt uncertain.

India and the US are currently engaged in active and intense trade discussions, aiming for a bilateral trade agreement by fall 2025. Following recent talks between Prime Minister Modi and President Trump, the negotiations also include topics like opening up India’s agricultural market and boosting energy relations.

India is preparing to respond appropriately to the US’ reciprocal tariffs, expected to be implemented next week. While there is uncertainty surrounding the tariffs, Indian officials and industries are concerned about potential impacts on jobs and seeking swift completion of a bilateral trade agreement to mitigate effects. Talks for the agreement are reportedly progressing well.

India will not impose restrictions on exporting 1 million metric tons of sugar this season despite lower output estimates. With ample stocks to meet domestic needs and surplus supply, the government sees no reason for export curbs. Mills will produce 26.4 million tons of sugar against a demand of 28 million tons, with adequate carryover […]

India’s exports are expected to grow despite global trade uncertainties, according to Director General of Foreign Trade Santosh Kumar Sarangi. Steps like production linked incentive schemes are boosting domestic manufacturing and order books remain positive, suggesting a healthy growth rate for exports, as emphasized by FIEO Director General Ajay Sahai.

India is considering reducing customs tariffs on select US imports, like gas and farm produce, in a bid to secure concessions in regulations for its own exports. Negotiations aim to finalize the first part of a Bilateral Trade Agreement within six months, focusing initially on goods trade.

The textile and apparel industry has set a target of $100 billion in exports by 2030 and proposed a five-point plan. Key measures include removing the 10% import duty on cotton fibers, launching an incentivization scheme, fast-tracking PM MITRA parks, expediting FTAs with the EU and USA, and not increasing GST rates for ready-made garments.

India and the US are set to increase market access and improve bilateral trade by reducing tariffs and enhancing supply chain integration. With recent progress in exporting goods under PLI schemes, India aims to strengthen its domestic production across key sectors including pharmaceuticals and electronics, while engaging in trade agreements with partners like EFTA.

India needs to be careful while negotiating a trade agreement with the US due to the lack of Fast Track Authority, which may lead to Congressional changes and demands for policy shifts, potentially affecting its sovereignty. These factors create significant uncertainty and highlight the importance of vigilance during negotiations.