India and the US agreed in February to work on the first phase of a trade deal aimed at reaching USD 500 billion worth of bilateral trade by 2030.
“India is one of the first countries to start talks with the US on the deal and agree on a deadline to finalize it,” some officials noted. India's Commerce Ministry, which is leading the talks with the US, has not yet responded to an email seeking comment.
At an event in New Delhi earlier this week, India's Commerce Minister noted that manufacturers in India and the US have been hurt by China's unfair trade practices for years. He also stated that India would step up inspections of imports to identify any potential dumped goods, including those from China.
Just 24 hours after Trump imposed the tariffs, China temporarily lowered duties on its trading partners, including India. Focusing on a bilateral trade war with China, Trump pledged to raise tariffs on Chinese imports to 125%. The reciprocal US tariff on India is 10%.
Ajay Sahai, Director General of the Federation of Indian Export Organizations, which represents more than 37,000 exporters, noted that the 90-day break gives Indian negotiators time to sign a bilateral trade deal with the US. “The US seems determined to deal a hard blow to China and if it wants to ensure an uninterrupted supply of goods to its consumers while keeping inflation in check, India remains one of the most reliable suppliers,” Sahai stated.
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