Robert Besser
14 Apr 2025, 22:39 GMT+10
NEW DELHI, India: India is pushing to fast-track a trade agreement with the United States following a temporary pause on new tariffs, viewing the move as a window of opportunity to strengthen economic ties.
A government official said this week that New Delhi aims to move swiftly in its negotiations, after President Donald Trump held off on imposing further reciprocal tariffs on dozens of countries while sharply increasing levies on Chinese imports.
"India is one of the first nations to start talks over a deal with the United States and to have jointly agreed to a deadline to conclude it," the official said, speaking on condition of anonymity due to the sensitivity of the matter.
The two countries had agreed in February to work toward the first phase of a broader deal by the end of the year, aiming to grow bilateral trade to US$500 billion by 2030.
India's trade ministry, which is leading the discussions, did not immediately respond to a request for comment.
Trump's decision to pause tariffs, announced April 9, came just a day after sweeping increases caused significant market volatility. While duties on China were raised to 125 percent, the U.S. reciprocal tariff on Indian goods currently stands at 10 percent.
Indian officials said they plan to intensify scrutiny of imports, particularly to detect any dumping of Chinese goods. The Indian trade minister noted earlier this week that manufacturers in both countries have been affected by China's trade practices.
The 90-day tariff pause offers breathing room to Indian exporters, especially those in the shrimp industry, which faced higher duties compared to competitors like Ecuador, the official said.
Other impacted sectors include electronics, gems, and jewellery, with exports to the U.S. valued at nearly $14 billion and $9 billion, respectively.
Ajay Sahai, director general of the Federation of Indian Export Organisations, said the window should be used to finalise the long-awaited trade agreement.
"The U.S. appears determined to hit China hard, and if it wants to ensure a non-disruptive supply of goods to its consumers while keeping inflation in check, India remains one of the most reliable suppliers," Sahai said.
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