Trump Tariffs: India To Stay Strategic, Focus On Concluding Trade Pact By August — Profit Exclusive
The BTA, once effective, could supersede existing tariffs imposed by US administration, said an official privy to the discussion told NDTV Profit.
India is not planning a knee-jerk reaction to the United States’ reciprocal duties, with official sources emphasising that the primary focus remains on finalising the Bilateral Trade Agreement. The agreement is expected to be concluded as early as August. If it does, it would be the first bilateral deal to be finalised within just six months.
Notably, India's trade deals with UK and EU have been hanging for over two years, despite several rounds of negotiations.
The BTA, once effective, could supersede existing tariffs imposed by US administration, said an official privy to the discussion.
The trade deal would have new effective tariff rates under specific clauses designed to address key trade issues across sectors, the person underlined.
US President Donald Trump imposed 27% tariff on Indian imports, citing unfair trade practices and vowed to end decades of imbalances in US foreign trade as part of a larger tariff framework.
The strategic move reflects India’s commitment to a balanced and forward-looking trade relationship, with the US focusing on long-term economic benefits, rather than immediate retaliatory measures.
In addition to tariff-related matters, there are also ongoing efforts to tackle non-tariff barriers that have affected smoother trade flows.
A dedicated portal will be set up for exporters, aimed at streamlining procedures, enhancing transparency, and facilitating real-time updates on trade-related developments, the official said.
The BTA is expected to open new avenues for bilateral commerce, improve market access, and foster greater cooperation across sectors such as technology, agriculture, and manufacturing, they said.
While talks on the BTA are already underway and offline discussion will commence from this month itself, inputs have been sought from stakeholders across industries, they said.
Official sources have reaffirmed that the focus will remain on a robust, well-negotiated agreement, that delivers tangible benefits for Indian exporters and overall economy.
Since the reciprocal duties are levied across all countries, especially those competing with India in exports to USA, it may not have significant impact. However, the move would certainly raise federal interest rates. That may result in outward flow of funds and pressure on exchange rates. Investment may go to USA, another official explained.
