India adopts cautious approach in trade talks with US amid tariff pressures, focuses on protecting interests
India is cautiously negotiating a trade deal with the US, prioritizing its interests and sensitive sectors. Despite US pressure, India aims for a balanced agreement while managing ongoing trade talks with other nations.
FollowNew Delhi: India is taking a cautious approach in its trade deal negotiations with the US, prioritizing protection of its interests amidst suggestions from other countries to explore bilateral pacts to mitigate the impact of Donald Trump's tariffs. A senior government official emphasized the need for a balanced and mutually beneficial agreement, leveraging India's early start in talks as an advantage.
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The government intends to maintain its stance on sensitive sectors, despite US pressure to reduce tariffs. The official noted that the US also has its own sensitivities, such as peanut butter. US Commerce Secretary Howard Lutnick stressed that agriculture cannot be excluded from discussions, suggesting India consider quotas and limits.
Negotiations on new trade agreements
India has been engaging with several countries following the tariff announcement, but its capacity to negotiate new trade agreements is limited due to ongoing talks with seven countries, including the UK, EU, Oman, Australia, New Zealand, and Chile. Bahrain, Qatar, and the Gulf Cooperation Council have expressed interest in discussing free trade agreements, although talks with the latter have progressed slowly.
India's trade negotiations are focused on protecting its interests, with the government cautious not to rush into an agreement. The country is better positioned to absorb the impact of US tariffs compared to some Asian rivals. While there may be challenges in sectors like marine products, exporters can explore new markets, such as the EU. If the US imposes higher tariffs on pharmaceuticals, India expects a minimal impact. The Commerce Ministry may assist exporters while ensuring countries like China do not divert cheap, subsidized goods into the Indian market.
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