India US Trade Deal: Preferential Tariffs Expected
India Eyes Preferential U.S.tariffs in Landmark Trade Talks
New Delhi is projecting confidence in its ongoing trade negotiations with Washington, aiming for preferential tariff rates that outshine those offered to economic rivals, according to India’s Commerce and Industry Minister Piyush Goyal.
Speaking to CNBC,Goyal,who spearheaded the U.K.-India trade agreement, signaled a strong negotiating stance from india. “India will get a preferential tariff compared to our peers and our competitors, as we were amongst the first to get into negotiations and our discussions, our engagement is truly very, very meaningful,” he stated. This optimism comes as India seeks terms superior to the current tariffs faced by Japan and Vietnam on certain U.S. imports, which stand at 15% and 20% respectively.
The minister described the U.S. trade talks as “progressing extremely well,” with the ultimate goal of achieving a $500 billion bilateral trade target by 2030,a benchmark previously set by Indian Prime Minister Narendra Modi. Goyal highlighted the robust relationship between the two nations, noting his “excellent relations” with U.S. Commerce Secretary Howard Lutnick, who is leading the American negotiating team. “The United States and India share a very special relationship, and I’m very confident we’ll do a robust and good deal where both countries benefit and where businesses on both sides are happy,” Goyal added.
This positive outlook is shared by Indian business leaders. Keshav Murugesh, chairman of the Confederation of Indian Industry UK Business Forum and CEO of WNS, predicted that India would negotiate from a position of strength. He emphasized that Indian negotiators would approach the talks “strictly on merits” and that “India will not be a pushover.” Murugesh also pointed to the mutual motivation for a deal, suggesting that the Trump administration recognizes India’s growing economic meaning, stating, “President trump ‘and his people want a good deal with India because, let’s face it, India is the future.”
Minister Goyal further articulated India’s strategic shift towards partnering with “developed nations who complement the India story,” a departure from past agreements with countries perceived as direct competitors. he cited India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP) as an example of this policy, describing the pact as possibly being “like a China-India FTA.”
These comments coincide with the finalization of the free trade agreement between India and the United Kingdom. This bilateral deal, initially announced in May, will grant the U.K. reduced tariffs on key exports like whisky and cars over several years, while India will benefit from tariff-free access on 99% of its imports from day one.
While expressing strong confidence in the U.S.negotiations, Goyal acknowledged that sensitive issues remain. When questioned about agriculture, a sector crucial to India’s economy and a significant political constituency, he declined to comment on specific trade discussions but underscored its importance. “We are always very sensitive to the interests of our farmers,the interests of our [Micro,Small,and Medium Enterprises] and will ensure that our areas of concern are well protected,” Goyal stated. he expressed confidence that the U.S. administration, including Secretary Lutnick, is “equally cognizant and sensitive about our concerns.”