US-India trade deal: Industry ready for any outcome, says CII chief; flags sectoral risks, supports government stand
As the 90-day suspension on the US-imposed reciprocal tariffs ends on July 9, Indian industry remains prepared for any outcome from the ongoing trade talks with the United States, according to Confederation of Indian Industry (CII) President Rajiv Memani.
Speaking to news agency ANI, Memani stressed that India will not sign any agreement that compromises national interest.
"The Indian government has given considerable time to understand industry concerns, issues and opportunities. Every industry, every size of industry has been consulted to understand how India should be positioned," Memani said.
He added, 'There is no compulsion in this regard… India will only do this deal when it is in India's and America's interest.'
The potential bilateral trade deal is being closely tracked as the July 9 deadline also marks the end of the suspension of a 26 per cent additional import duty on Indian goods entering the US.
As per news agency PTI, a favourable outcome could lift sentiment across trade-sensitive sectors like IT, auto and pharmaceuticals, which have been under pressure in anticipation of higher tariffs.
Memani acknowledged the sector-specific impact if the deal does not go through.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Paras Sector 59 Gurgaon | Paras Floret Low-Rise Flats
Paras The Florett
Book Now
Undo
'It is certain that some sectors and some industries will face difficulties, but industries do not want to work in a way that harms the country,' he said.
The automotive sector is particularly vulnerable due to Mexico's existing zero-tariff trade agreement with the US, which gives it a competitive edge. 'If there's a 25 per cent gap, then Mexico becomes most competitive,' he warned.
He also pointed out that Vietnam's garment industry, with its 20 per cent tariff advantage, poses another challenge for Indian exporters.
'The garment industry could become slightly less competitive,' Memani added.
Even if a deal is finalised, Memani cautioned against expecting instant benefits, calling FTAs a 'long game.' He explained that both countries would need to make structural adjustments, and the Indian industry would need to improve its competitiveness. 'Many American companies may also invest in India to export from India. Indian companies will also have to focus on their competitiveness,' he said.
According to PTI, market analysts believe the tariff deadline will be the key macro trigger this week. Ajit Mishra of Religare Broking noted that the outcome 'could shape global trade dynamics,' while Vinod Nair of Geojit Investments said a deal would 'further lift market sentiment.'
Foreign fund flows are also expected to react to the trade developments. V K Vijayakumar of Geojit added that FII buying will depend on the trade outcome and Q1 earnings signals, with firms like TCS and Avenue Supermarts scheduled to release results this week.
'Trade deals are two-way. Some things will be good, while some sectors may face challenges,' Memani summed up, underlining that Indian industry stands firmly behind national priorities, with or without a deal.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
33 minutes ago
- Time of India
J&K govt, biz seek 5% GST on handicraft items
Omar Abdullah NEW DELHI: Jammu & Kashmir govt has sought lower GST on handloom and handicraft products in a move aimed at making pashmina shawls and silk carpets more affordable for Indian buyers. Currently, handloom and handicrafts items that cost Rs 1,000 or more attract 12% tax, and the proposal is to lower the levy to 5% on all products. Responding to the demand, Union minister Piyush Goyal suggested the businesses should take up the issue with the finance ministry. "We will try to reduce it. We will try to find a way," he said at an industry event. The proposal for pashmina shawls has been with the GST Council for several months and even CM Omar Abdullah had raised it in Jaisalmer in Dec.
&w=3840&q=100)
Business Standard
42 minutes ago
- Business Standard
Sunil Mittal, Warburg Pincus eye 49% in Haier India at steep discount
Sunil Mittal's family office and US-based private equity major Warburg Pincus have submitted a bid to acquire a 49 per cent stake in Haier India at a sharply reduced valuation of ₹6,000 crore ($720 million), according to people familiar with the matter. The Chinese parent, Haier Group, had initially sought a valuation of around $2 billion (₹17,100 crore), but offers were significantly lower, said one of the persons, asking not to be named as the discussions are private. Haier is now weighing whether to proceed with the deal or wait for improved market conditions, the person added. As part of the proposed transaction, Haier India employees are expected to acquire a 2 per cent stake, while a public listing is being considered within two years to provide an eventual exit route for the Chinese firm, the people said. 'After the deal, the buyer will have to pay a steep brand usage fees and royalties to the Chinese parent, which has dampened the valuation,' said a person close to the development. Haier, which fully owns the Indian subsidiary, has been exploring a potential exit for several months and even held early-stage discussions with Reliance Industries Ltd, India's largest conglomerate, according to the people. Emails sent to Haier, Mittal's office, and Warburg Pincus on Friday went unanswered until the press time. The proposed deal comes amid a broader trend of Chinese firms paring back their India exposure following geopolitical tensions and growing scrutiny of Chinese investments by India. In March last year, Chinese automaker SAIC Motor agreed to sell a majority stake in its Indian subsidiary MG Motors India to the Sajjan Jindal group. In May, Ant Group exited its investment in Paytm through $246 million worth via block trades. Haier entered India in 2004 and holds a 14 per cent share of the refrigerator market. Its presence in other categories — including washing machines, televisions, and air conditioners — remains in the single digit. India's household appliances market is projected to reach $64.3 billion in 2025, growing at a 7.3 percent CAGR through 2030, according to data from Statista.
Time of India
an hour ago
- Time of India
Amid import fears, govt to review protection for homegrown apples
SRINAGAR: Amid fears of rising imports, commerce and industry minister on Sunday said govt will review protection for homegrown apples, while underlining the need to strike a balance between the interests of growers and the needs of consumers. Tired of too many ads? go ad free now The minister's comment at a meeting with trade and industry here came amid demands from the US to lower tariffs on apples and other farm goods as part of the early tranche of a bilateral trade deal. India has expressed its reluctance to lower import duty on agricultural products while controlling the entry of genetically modified maize and soybean. Goyal said govt has prescribed a minimum import price of Rs 50 a kg and there is also a 25% import duty, translating into a protection of around Rs 75 a kg and a selling price of at least Rs 125-150 a kg. With domestic prices linked to the cost of imported goods, Goyal argued that a sharp increase in protection will raise retail prices further, making them unattractive to consumers and hurting overall demand. "To give the taste of Kashmir apples to the country, price has to be affordable. We need to balance between the interests of producers and consumers. We will see if MIP and other protection can be increased," he said. With production not keeping pace with growing demand, India imports 4.5-5 lakh tonne of apple, with Turkiye being among the largest sources. The US is seeking to topple Turkiye by seeking preferential duty access. Goyal told local businessmen govt was making efforts to step up exports of Indian goods through free trade agreements. While asserting that the Modi govt kept the country's interests paramount, he also said trade liberalisation cannot be a one-way street and as part of trade deals, both countries needed to open markets. Tired of too many ads? go ad free now He said the new rail link from Kashmir will help move goods faster to the rest of the country and assured businesses that development work will be pushed by the Centre. Noting that the Pahalgam terror attack was meant to hurt tourism and the economy in Kashmir, the minister said that business is returning to normal and tourist flow has also increased.
