India gears up for a potential trade deal as Trump targets China, say government sources

India prepares to offer tariff cuts on US goods like pork, medical devices, and motorcycles, seeking a broader trade deal with the incoming Trump administration. To address trade imbalances, India proposes increased purchases of US LNG and defense equipment. Officials see opportunity in Trump’s China tariffs, pitching India as an alternative manufacturing hub.

India is analysing potential impacts and preparing for possible US tariff increases under the Trump administration. Officials are examining various scenarios and remedies, while experts suggest a strategic approach, including potential tariff adjustments and WTO action. India’s current average import tariff is low, but specific products like Harley Davidsons and medical devices face higher tariffs.

Iran’s currency devaluation threatens Indian tea and basmati rice exports. The increased cost of imports may hinder sales of premium orthodox tea, while basmati rice exporters face insurance and pricing challenges. However, some believe the impact on rice may be mitigated by government subsidies.

India’s record-high trade deficit in November, fueled by a surge in gold imports, may be due to a data error. Officials potentially double-counted gold held in warehouses after a system change in July, overestimating imports by up to 30%. This error, if confirmed, could lead to revisions in trade figures and impact the rupee’s exchange […]

India’s sugar mills could export up to 2 million metric tons of sugar this season due to improved domestic supply and falling local prices. The increased cane cultivation, driven by good water availability and lower prices of competing crops, is expected to lead to record sugar production in 2024-25.

President-elect Donald Trump emphasized his commitment to imposing reciprocal tariffs on countries like India and Brazil that levy high tariffs on US goods. He stated his administration would match tariffs imposed by other nations, ensuring fair trade practices. Trump’s Commerce Secretary nominee, Howard Lutnick, echoed this sentiment, highlighting reciprocity as a key principle for the […]

The Biden administration is finalizing a national security memorandum to update US export control policies, easing space sector collaboration with India. This move aims to reduce barriers for US companies partnering with Indian counterparts, fostering joint space exploration and technological advancements, including potential Indian astronaut participation in future US missions.

Trade between India and the UK boomed in 2024. HSBC data reveals payments from India to UK businesses jumped 121%. Payments from UK businesses to India also grew by 32%. Client referrals between HSBC India and HSBC UK increased. Both governments plan to restart FTA talks in 2025. This could further boost the GBP 42 […]

India is poised to levy a temporary 25% tax on steel imports to counter inexpensive imports, primarily from China. Small manufacturers’ initial opposition subsided after assurances of reduced steel prices from larger domestic producers. A government investigation into the impact of cheap imports is expected to conclude within a month, paving the way for the […]

India’s gold imports surged to a record $14.9 billion in November 2024, surpassing crude oil. Free trade agreements, like the one with the UAE, are blamed for fueling this increase through duty-free gold imports. A think tank recommends excluding precious metals from future FTAs to protect India’s trade balance and forex reserves.