India-US trade deal: With Donald Trump’s 50% tariffs looming, India reviews market access offers for US; three-pronged strategy to protect exporters

India-US trade deal: India stays optimistic about finalising the Bilateral Trade Agreement this month. (AI picture)

With US President Donald Trump doubling the tariff charge to 50%, India is trying to evaluate its market access offers to America in some sectors. India is conducting a recent evaluation of its market access proposals to the United States, as American trade negotiators put together to go to later this month, sources advised ET. India stays optimistic about finalising the Bilateral Trade Agreement this month, regardless of US President Donald Trump’s resolution to double tariffs, with 21 days remaining earlier than the extra 25% obligation takes impact. A US crew is scheduled to go to India for trade deal talks between August 25 and August 30. Trump’s 25% further tariff on India for the latter’s Russia crude oil trade is ready to kick in from August 27.

India hopeful of US trade deal – purple traces keep

According to the ET report, senior authorities officers are main the analysis of India’s trade deal provide to the US. Instructions have been given to financial ministries to study their respective sectors and assess potential enhancements to India’s provide.

In full swing

However, sources point out that India maintains its agency stance on agricultural and dairy market access, contemplating them non-negotiable. Prime Minister Narendra Modi has explicitly said his dedication to safeguarding the pursuits of farmers and the dairy sector.The United States is looking for expanded market access for its agricultural merchandise, together with corn, soyabean, apples, almonds, ethanol and dairy objects. India maintains its resistance to these calls for, contemplating the direct affect on its farming neighborhood.Also Read | ‘Worse than Covid’: Donald Trump’s 50% tariffs on India depart exporters troubled; will US transfer affect China+1 strategy?Nevertheless, authorities are evaluating different sectors to decide potential enhancements in market access alternatives, in accordance to sources quoted within the report.

Trump tariffs: Three-pronged strategy to protect exporters

Even as trade deal negotiations are within the works, the federal government is parallelly creating a three-part method to mitigate the results of elevated tariffs. “Work is going at a fast pace to bring some relief to exporters,” stated an official.Officials indicated that the proposed Export Promotion Mission would come with customised schemes to help sectors going through challenges. These initiatives are designed to keep long-term trade stability.

Indian exports uncompetitive after 50% US tariff

“Another element pertains to diversion of goods to other geographies. Exporters are working on this and the government is examining opportunities to assist this diversion,” stated an official. The strategy’s third side focuses on figuring out sectors experiencing decreased export orders, which might be redirected to fulfil home necessities. “This way production will not be impacted and our domestic demand, which is otherwise met through imports, would be taken care of,” the official added.Also Read | Explainer: Donald Trump’s 50% tariffs – will India budge on Russia crude oil trade?

India-US trade deal talks in limbo?

Trump’s newest feedback have forged an uncertainty on whether or not a sixth spherical of trade deal talks will happen. Trump has dismissed any prospects of trade talks with India, making it conditional upon addressing tariff-related considerations.“No, not until we get it resolved,” Trump stated on Thursday on the Oval Office when requested if he anticipates enhanced trade discussions with India.

Major objects US imports from India

PM Modi on his half has made it clear that for India the pursuits of farmers are of nice significance.“For us, the interests of our farmers is top priority. India will never compromise on the interests of its farmers, dairy farmers and fishermen. I know I will personally have to pay a heavy price but I am prepared for it,” Modi stated.“For the farmers of my country, for the fishermen of my country, for the livestock rearers of my country, Bharat stands ready today,” he stated.Also Read | Donald Trump’s 25% further tariff on India: What are ‘secondary tariffs’ and the way do they differ from ‘secondary sanctions’? Explained