India is working to finalize a partial bilateral trade agreement (BTA) with the United States within the 90-day window following the pause on higher tariffs imposed by former US President Donald Trump, according to sources on April 10.
Over the next three months, New Delhi will follow a three-track strategy to strengthen trade relations while protecting domestic interests, a source revealed.
1. US Trade Deal:
India is aiming to conclude an initial trade deal with the US focusing on essential and non-sensitive goods. The government is considering reducing import duties on certain US products, while the US is expected to extend permanent tariff concessions in return. High-level discussions have already taken place, involving the Ministry of External Affairs, the Ministry of Commerce & Industry, the Ministry of Finance, and the Prime Minister’s Office.
2. Trade Agreements with EU and UK:
To mitigate trade-related risks, India is fast-tracking its negotiations for free trade agreements with both the European Union and the United Kingdom. Talks are already in an advanced phase, with India aiming to finalize these deals soon.
3. Curbing Chinese Dumping:
India plans to implement stricter measures to prevent the dumping of goods, especially from China. This includes rigorous enforcement of the Quality Control Order (QCO) to regulate Chinese imports. An inter-ministerial group has also been set up to address this issue and respond swiftly to any violations.
