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India and US Engage in Intricate Trade Talks: Officials Confirm Progress Amidst Tariff Debate
Trade negotiations between India and the United States are actively underway, with both nations striving to finalize a bilateral trade agreement (BTA) before a critical deadline of July 8. This comes as US President Donald Trump publicly claimed that India has proposed a “zero tariffs” deal on American goods, a assertion that Indian External Affairs Minister S. Jaishankar has addressed by cautioning against premature conclusions in “very complicated” and “intricate” discussions.
Fast-Tracked Negotiations and Tariff Debates
The urgency in these talks stems from a 90-day pause announced by the US on April 2, following its imposition of new, steep reciprocal tariffs. This pause provides an opportunity for key partners like India to negotiate before potentially facing the full impact of these duties. While Trump, during a visit to Qatar, stated, “They’ve offered us a deal where basically they’re willing to literally charge us no tariff,” Indian officials have clarified that tariff cuts are being negotiated selectively, not across the board.
Jaishankar emphasized that any trade deal must be “mutually beneficial” and “work for both countries,” indicating India’s firm stance on protecting its national interests. This includes not compromising on sensitive sectors such as dairy and agriculture, which will not be opened up to imports to protect Indian farmers and producers.
Broader Context of Trade Policy and Geopolitics
The ongoing India-US trade discussions are set against a backdrop of evolving global trade dynamics, including the recent 90-day tariff truce between the US and China. While US-China trade relations show signs of improvement, India continues to be viewed as a competitive alternative manufacturing base, particularly under the “China Plus One” strategy. Trump’s recent expression of disapproval regarding Apple’s expanded iPhone manufacturing in India underscores the US focus on domestic production, but Indian officials maintain that companies make decisions based on profitability and local market strength.
The conclusion of an India-US trade agreement, if signed before the July 8 deadline, could mark a significant reset in bilateral ties, offering greater stability and clarity to industries. However, as Jaishankar noted, the process is far from being finalized, reflecting the complexities inherent in balancing national interests with the pursuit of a comprehensive trade deal.
Source – Economictimes, Businessstander, Youtube, Fortuneindia, Economistime
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