Duty waiver on cotton imports extended till December

The Indian government has prolonged the import duty exemption on cotton until December 31st to aid the textile industry during the festive season, following a drop in domestic cotton production. This move aims to lower input costs for exporters, especially after the US imposed a 50% tariff on Indian goods.

India anticipates restarting talks with the United States on a proposed bilateral trade agreement. Resolving the 50% tariff issue on Indian goods is crucial for the deal. The government considers support for exporters, including an export promotion mission. Washington seeks tariff reductions on various products. India’s exports to the US rose in April-July FY26.

US National Economic Council Director Kevin Hassett cited India’s reluctance to open its markets to American products, describing the India-US relationship as “complicated.” This follows Washington’s imposition of 50 per cent tariffs on Indian goods. Hassett linked these tariffs to geopolitical efforts pressuring Russia over the Ukraine conflict, hinting at further escalation if India doesn’t […]

US Trump Tariffs News: White House trade adviser Peter Navarro has branded the Ukraine conflict “Modi’s war,” claiming India’s discounted oil purchases from Russia bankroll Moscow’s invasion and raise costs for American taxpayers. His remarks came as US tariffs on Indian goods doubled to 50 percent, affecting more than half of exports. India insists its […]

Reserve Bank of India will meet with industry leaders to discuss the impact of US tariffs. The consultation is planned for September. It will assess how the 50% tariffs affect various sectors. Labour-intensive industries may face significant challenges. The meeting will also cover the India-UK trade agreement. RBI aims to cushion the economy from the […]

India is considering easing restrictions on Foreign Direct Investment from China. This move comes amid warming relations between the two nations. Niti Aayog suggested relaxing the mandatory prior approval for investments up to 24%. Recent ministerial visits and agreements on flights and tourism signal improved ties.

India is strategically targeting 40 countries, including the UK and Japan, to boost textile exports following the imposition of US tariffs. The initiative involves participating in international events and running sector-specific campaigns under a unified Brand India vision. These 40 nations represent a $590 billion textile import market, offering India significant growth potential.

India faces a significant challenge as the US imposes a 50% tariff on $48.2 billion worth of its exports, effective Wednesday, heavily impacting labor-intensive sectors like textiles and seafood. The government is strategizing to mitigate the effects through an Export Promotion Mission and potential GST reforms to bolster domestic demand.

​​ET looks at India’s trade with the US and how it fares viz-a-viz its competitors.

The Indian seafood industry, a major shrimp exporter to the US, faces challenges due to a 50% tariff increase. Export shipments are paused as both exporters and importers await market adjustments. US consumers will likely bear the brunt of the higher costs, as India’s value-added seafood products are difficult to replace immediately.