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Time of India
21 hours ago
- Business
- Time of India
Before the clock runs out: India, US race to seal trade deal before Donald Trump's tariffs kick in; top things to expect
India-US trade deal: Currently, India's main trade representative is conducting negotiations in Washington. (AI image) India-US trade deal: The United States and India appear to be in the final stages of discussions to finalise the first-cut of the US-Indian trade deal. With US President Donald Trump's July deadline looming, the trade deal could determine the trajectory of their economic relationship, according to the Global Trade and Research Initiative (GTRI). Currently, India's main trade representative is conducting negotiations in Washington, whilst both nations strive to achieve a limited arrangement -- commonly known as a "mini-deal" -- before the deadline expires. The timeframe corresponds to President Trump's 90-day suspension of nation-specific tariffs, declared on April 2. Should negotiations fail to conclude by July 8, India might encounter renewed tariff pressures, although analysts suggest substantial duties are improbable. India-US Trade Deal: What To Expect The final result could be a reduced-scope trade arrangement, structured similarly to the US-UK compact finalised in May, GTRI said according to an ANI report. This framework would require India to lower Most Favoured Nation (MFN) duties on various industrial products, including automobiles, which has been a persistent request from Washington, GTRI said. Regarding agricultural commerce, India might grant restricted entry for American products including ethanol, almonds, apples, avocados, wine, and spirits through modest duty reductions and tariff-rate quotas, the GTRI report said. India aims to safeguard crucial sectors including dairy, rice and wheat sectors, considering their vital role in rural sustenance and food security for its population. The agreement could include strategic arrangements involving substantial procurement of American oil, LNG, commercial aircraft and nuclear power equipment. The negotiations might require India to relax regulations concerning multi-brand retail and remanufactured goods importation, potentially creating opportunities for international retail corporations, the report said. As a concession, the United States would likely maintain a 10% baseline tariff on most Indian exports, rather than implementing the previously announced 26% increase, GTRI said. Nevertheless, the US position on maintaining its existing MFN tariffs on Indian goods raises questions about equitable treatment and mutual benefits. Also Read | 'Like H-1B without a lottery': What is O-1 visa? New route to US becomes popular among Indians; check details India-US Trade Deal Hurdles: The negotiations could potentially break down if the United States persists in demanding extensive access to India's fundamental agricultural sector or continues to advocate for GMO product allowances. India has explicitly declared that these requirements pose risks to food security and impact the sustenance of more than 700 million individuals within the nation's agricultural economy. Although agricultural products constitute a minor share of American exports to India, the US administration continues to press strongly for enhanced market accessibility. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Livguard Lithium-X: The Future of Power Backup Livguard Learn More Undo Experts in India are concerned that any concessions might pave the way for subsequent requests that could undermine the country's established public procurement framework and the minimum support price (MSP) mechanism, which are vital components of its agricultural policies. Also Read | China plays hardball! After choking rare earth magnets supply, China blocks important agriculture-related shipments to India; continues exports to others Should the discussions fail to progress, there remains uncertainty about whether President Trump would reinstate the previous 26% duties. Trade specialists consider this scenario unlikely, noting that India was not a primary target in the initial tariff directive. Nevertheless, considering Trump's unconventional policy decisions, all possibilities remain open. Irrespective of how negotiations conclude, trade authorities advise that India should maintain its position and advocate for an agreement based on mutual benefit, equilibrium and clarity. GTRI emphasises "Any trade deal with the US must not be politically driven or one-sided; it must protect our farmers, our digital ecosystem, and our sovereign regulatory space." Today, President Donald Trump indicated that a significant trade agreement with India is on the horizon. "We're not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That's the easy way to do it, and my people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do," he said." "But we're having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India, in the China deal, we're starting to open up China. Things that never really could have happened, and the relationship with every country has been very good" he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
a day ago
- Business
- India Gazette
India and US race against time to finalize trade deal before July 8: GTRI
New Delhi [India], June 27 (ANI): India and the United States are in the final stretch of critical trade negotiations, with just days remaining before the July 8 deadline that could shape the future of bilateral economic ties, according to Global Trade and Research Initiative (GTRI). India's top trade negotiator is currently in Washington, and both sides are working to secure a limited agreement -- often referred to as a 'mini-deal' -- before the clock runs out. The deadline is tied to President Trump's 90-day suspension of special country-specific tariffs, announced on April 2. If no agreement is reached by July 8, India could face renewed tariff pressures, although experts say a return to steep duties is unlikely. The most likely outcome appears to be a scaled-down trade agreement modelled after the US-UK mini deal signed in May. Under this plan, India would reduce Most Favoured Nation (MFN) tariffs on several industrial items, including automobiles -- a long-standing demand from Washington. In the agriculture sector, India may allow limited access for U.S. products like ethanol, almonds, apples, avocados, wine, and spirits through modest tariff cuts and tariff-rate quotas. However, India is expected to protect its most sensitive sectors, such as dairy, rice, and wheat, which directly impact rural livelihoods and food security for millions. The deal may also include strategic commitments such as large-scale purchases of U.S. oil, liquefied natural gas (LNG), civilian aircraft, and nuclear energy equipment. Additionally, India may face pressure to ease restrictions in multi-brand retail and import rules for remanufactured goods, potentially opening the door for companies like Amazon and Walmart. In exchange, the U.S. would not re-impose the harsher 26 per cent tariffs announced earlier this year. Instead, a baseline 10 per cent tariff would apply to most Indian exports. However, the U.S. is not offering to reduce its own MFN tariffs on Indian goods, raising concerns over fairness and lack of reciprocity in the deal. On the other hand, the talks could fail if the U.S. continues to push for deeper access to India's core agriculture sector or insists on allowing genetically modified (GMO) products. India has firmly stated that such demands threaten food security and the livelihoods of over 700 million people in the country's agrarian economy. While agriculture makes up a small portion of U.S. exports to India, Washington is pushing aggressively for market access. Indian experts fear that any compromise could lead to future demands that weaken India's public procurement system and minimum support price (MSP) structure, critical parts of its farm policy. If negotiations break down, it is uncertain whether President Trump will reintroduce the earlier 26 per cent tariffs. Trade analysts believe this is unlikely, as India was not among the most heavily targeted countries in the original tariff order. However, given Trump's unpredictable policy moves, nothing can be ruled out. Regardless of the outcome, trade experts caution that India must hold its ground and insist on a reciprocal, balanced, and transparent agreement. GTRI underscores 'Any trade deal with the U.S. must not be politically driven or one-sided; it must protect our farmers, our digital ecosystem, and our sovereign regulatory space.' Earlier today, President Donald Trump hinted big trade deal with India soon. 'We're not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That's the easy way to do it, and my people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do,' he said.' 'But we're having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India, in the China deal, we're starting to open up China. Things that never really could have happened, and the relationship with every country has been very good' he added. (ANI)
Time of India
a day ago
- Business
- Time of India
India-US trade talks: GTRI warns against one-sided deal; says farmers, digital space must be protected
Representative image India must ensure that any trade agreement with the United States is balanced, not politically driven, and protects critical sectors like agriculture, digital infrastructure, and regulatory sovereignty, the Global Trade Research Initiative (GTRI) cautioned on Friday. With talks entering a crucial phase in Washington, the clock is ticking toward the July 9 deadline, the end of US President Donald Trump's 90-day suspension of country-specific tariffs, announced on April 2. 'The more likely outcome is a limited trade pact, styled after the US-UK mini trade deal announced on May 8,' said GTRI founder Ajay Srivastava as cited by PTI. 'Any trade deal with the US must not be politically driven or one-sided. It must protect our farmers, our digital ecosystem, and our sovereign regulatory space,' he emphasised. India's chief trade negotiator is currently in Washington, with both sides racing to finalise an interim agreement that would help avert steeper tariffs. According to news agency ANI , if no deal is reached, India risks facing baseline duties of 10% on exports, a less severe scenario than the original 26% tariff threat, though concerns over lack of reciprocity remain. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Pelajari Undo As per GTRI, under the mini-deal framework, India may agree to reduce tariffs on a wide range of industrial goods, including automobiles, a long-pending demand from Washington. In agriculture, limited market access may be extended via tariff-rate quotas (TRQs) and duty reductions on items like ethanol, apples, walnuts, almonds, raisins, avocados, olive oil, spirits, and wine. However, GTRI and other trade experts argue that India must draw red lines. Key sectors such as rice, wheat, and dairy, which are vital to rural livelihoods and national food security, must remain insulated from external pressure. India fears any concession here could set a precedent, potentially undermining the minimum support price (MSP) system and the public procurement model in the future. Beyond tariffs, the US is likely to push for large-scale commercial orders, including purchases of oil, LNG, aircraft from Boeing, helicopters, and nuclear reactors. Washington may also seek greater foreign direct investment (FDI) access in multi-brand retail, benefiting players like Walmart and Amazon and demand liberalised rules on remanufactured goods. While US President Trump recently hinted at a 'very big' trade deal with India, he also said that not every country will get one and some may instead receive a tariff notification. 'We have one coming up, maybe with India. Very big one... We're going to open up India,' he said during a speech. Despite the urgency, GTRI warned that India should not rush into a deal that lacks transparency or undermines long-term policy autonomy. 'India must hold its ground and insist on a reciprocal, balanced, and transparent agreement,' the think tank said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
a day ago
- Business
- Business Standard
India must protect farmers, digital ecosystem in trade pact with US: GTRI
Any trade agreement with the US must not be politically driven or one-sided and India should protect its farmers, digital ecosystem, and policy space, economic think tank GTRI said on Friday. With India's chief trade negotiator in Washington DC and the clock ticking, the next few days could determine whether India and the US settle for a limited mini-deal or walk away from the negotiating table - at least for now, the Global Trade Research Initiative (GTRI) said. The two sides are looking at finalising an interim trade pact before July 9, as it marks the end of US President Donald Trump's 90-day suspension of the country-specific tariffs, originally announced on April 2. "The more likely outcome is a limited trade pact - styled after the US-UK mini trade deal announced on May 8," GTRI Founder Ajay Srivastava said, adding, "any trade deal with the US must not be politically driven or one-sided, it must protect our farmers, our digital ecosystem, and our sovereign regulatory space." Under a mini or interim deal, according to the think tank, India is expected to cut tariffs on a wide range of industrial goods, including automobiles, a persistent demand from Washington. In agriculture, India may offer limited market access through tariff reductions and tariff-rate quotas (TRQs) on select US products such as ethanol, almonds, walnuts, apples, raisins, avocados, olive oil, spirits, and wine, it added. Beyond tariffs, the US is expected to press India for large-scale commercial purchases, including oil and LNG, civilian and military aircraft from Boeing, helicopters, and nuclear reactors, it said. "There may also be pressure on India to ease FDI restrictions in multi-brand retail, potentially benefiting firms like Amazon and Walmart and to liberalise rules on remanufactured goods, currently subject to stringent import norms," Srivastava said. Agricultural goods account for less than 5 per cent of US exports to India. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
a day ago
- Business
- Time of India
India must protect its farmers, digital ecosystem, policy space in trade pact with US: GTRI
Any trade agreement with the US must not be politically driven or one-sided and India should protect its farmers, digital ecosystem, and policy space, economic think tank GTRI said on Friday. With India's chief trade negotiator in Washington DC and the clock ticking, the next few days could determine whether India and the US settle for a limited mini-deal or walk away from the negotiating table - at least for now, the Global Trade Research Initiative (GTRI) said. The two sides are looking at finalising an interim trade pact before July 9, as it marks the end of US President Donald Trump's 90-day suspension of the country-specific tariffs, originally announced on April 2. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cara Membantu Orang Terkasih Menghadapi Limfoma Limfoma Pelajari Undo "The more likely outcome is a limited trade pact - styled after the US-UK mini trade deal announced on May 8," GTRI Founder Ajay Srivastava said, adding, "any trade deal with the US must not be politically driven or one-sided, it must protect our farmers, our digital ecosystem, and our sovereign regulatory space." Under a mini or interim deal, according to the think tank, India is expected to cut tariffs on a wide range of industrial goods, including automobiles, a persistent demand from Washington. Live Events In agriculture, India may offer limited market access through tariff reductions and tariff-rate quotas (TRQs) on select US products such as ethanol, almonds, walnuts, apples, raisins, avocados, olive oil, spirits, and wine, it added. Beyond tariffs, the US is expected to press India for large-scale commercial purchases, including oil and LNG, civilian and military aircraft from Boeing, helicopters, and nuclear reactors, it said. "There may also be pressure on India to ease FDI restrictions in multi-brand retail, potentially benefiting firms like Amazon and Walmart and to liberalise rules on remanufactured goods, currently subject to stringent import norms," Srivastava said. Agricultural goods account for less than 5 per cent of US exports to India. PTI
