New Delhi is prepared to reduce import duties on more than half of American goods entering India as part of a proposed trade agreement, Reuters reports.
The potential concessions – covering $23 billion worth of US imports – mark India’s most significant tariff reduction in years and aim to shield its exporters from impending US retaliatory measures.
The negotiations come as Washington prepares to implement reciprocal tariffs from 2 April, a move that could affect 87% of India’s $66 billion exports to the United States. According to internal government assessments, sectors including pharmaceuticals, automotive components and machinery face particularly severe exposure, with potential tariff increases of 6-10% on key export categories.
Trade representatives from both nations are set to resume talks this week, with US Assistant Trade Representative Brendan Lynch leading an American delegation to New Delhi from Tuesday. Indian negotiators have indicated willingness to substantially lower or eliminate duties on 55% of currently tariffed US goods, where rates presently range between 5% and 30%.
The proposed concessions exclude politically sensitive agricultural products, with New Delhi maintaining its 30-60% tariffs on meat, dairy, wheat and maize. Potential flexibility exists for products such as almonds, pistachios and specialty grains, while automobile tariffs – which effectively exceed 100% – may see gradual reductions.
The talks occur against a backdrop of persistent US criticism, with President Trump recently reiterating his characterisation of India as a “tariff king”. New Delhi’s trade strategy appears designed to mitigate the perception while safeguarding what Trade Secretary Sunil Barthwal recently termed “non-negotiable national interests” in closed parliamentary briefings.
With the US trade deficit with India standing at $45.6 billion, the outcome of this week’s negotiations will significantly influence bilateral economic relations. As the 2 April deadline approaches, Indian officials emphasise their preference for a phased, sectoral approach to tariff reform rather than sweeping unilateral reductions.
