India-US trade deal: Talks enter sixth day as Donald Trump’s tariff deadline looms; top things India is pushing for amidst hectic negotiations

US President Donald Trump’s reciprocal tariffs suspension deadline approaches on July 9. (AI picture)

India-US trade deal replace: Intense trade discussions between India and the US proceed for the sixth consecutive day on Tuesday in Washington, as negotiations attain a essential part with New Delhi in search of improved market accessibility for its workforce-intensive merchandise, in line with an official.The Indian delegation, led by particular secretary Rajesh Agrawal from the Department of Commerce, is conducting negotiations in Washington relating to an interim trade settlement with the US.The Indian officers have prolonged their keep past the preliminary two-day schedule, which started on June 26.

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India Hardens Stance

India has taken a agency stance relating to obligation concessions on US agricultural merchandise. At the identical time it is requesting obligation reductions for its workforce-intensive sectors together with textiles, engineering, leather-based, gems and jewelry.The United States desires obligation reductions in agricultural and dairy sectors. However, India finds it problematic to grant these concessions as Indian agricultural staff function small farms for primary sustenance, making these sectors politically delicate.India has persistently maintained a closed dairy sector throughout all its free trade agreements with worldwide companions.The United States seeks obligation reductions on industrial merchandise, autos (notably electrical autos), wines, petrochemical gadgets, dairy merchandise, and agricultural items together with apples, tree nuts, and genetically modified crops.India goals to safe tariff reductions in sectors using giant workforces, together with textiles, gems and jewelry, leather-based merchandise, attire, plastics, chemical substances, shrimp, oil seeds, grapes and bananas inside the framework of the proposed trade settlement.According to the Global Trade Research Initiative (GTRI), as negotiations for the settlement attain a vital part, India is strongly advocating for full tariff elimination on exports that generate substantial employment, together with clothes, footwear, carpets, and leather-based items.Also Read | ‘If India removes tariffs, then cheap…’: GTRI warns of giant dangers to reducing duties on US farm items amidst trade deal talks; right here’s what may go unsuitableGTRI Founder Ajay Srivastava famous that with out such tariff reduction, the settlement can be tough to justify domestically. He noticed that Washington appears reluctant to eradicate excessive MFN (most favoured nation) tariffs or country-specific duties.Current proposals counsel Indian merchandise may incur a ten per cent extra cost above MFN charges, which would scale back their aggressive edge and successfully nullify market entry advantages.

India-US Trade Numbers

India’s merchandise exports to the United States elevated by 21.78 per cent reaching $17.25 billion throughout April-May of the present fiscal yr, while imports grew by 25.8 per cent to $8.87 billion.Merchandise exports to the United States elevated to $86.5 billion in FY25, displaying an 11.6 per cent progress from $77.5 billion in FY24.The majority of this trade consists of business merchandise, with labour-intensive exports comprising a substantial portion.“However, without fast-track trade authority, Washington is unable to cut its MFN (Most Favoured Nation) tariffs across the board. Worse still, US appears to be in no mood to exempt country specific tariffs and just bring it down to 10 per cent,” Srivastava stated.The potential influence of this example poses important issues, notably affecting labour-intensive industries that generated greater than $14.3 billion in exports from India to the US in FY25.The affected sectors embrace varied industries, together with clothes ($5.33 billion), textiles and carpets ($2.38 billion), made-ups and worn clothes ($2.95 billion), leather-based ($795 million), footwear ($461 million), ceramics and stoneware ($1.55 billion), and wooden and paper articles ($823 million).Also Read | Remittances at a report excessive! Indian diaspora sends dwelling $135.46 billion; inflows greater than double in eight yearsThese industries, primarily consisting of small and medium-sized companies, serve as important employment sources in Indian states together with Uttar Pradesh, Tamil Nadu, Gujarat, and West Bengal. However, they encounter substantial US tariffs, notably in clothes and footwear sectors, with charges usually between 8 and 20 per cent.India’s place stays agency relating to the removing of all tariffs by the US, encompassing each MFN and country-specific duties on labour-intensive merchandise throughout excessive and medium classes.These sectors present employment to thousands and thousands of individuals, particularly in rural and semi-urban areas, and are very important for India’s aims of employment technology, MSME growth, and rising ladies’s participation within the financial system.“Without meaningful tariff relief for these products, Indian negotiators warn, the FTA will be viewed as lopsided and politically untenable,” Srivastava stated.