India has proposed zero tariffs on metal, auto parts and prescribed drugs on a reciprocal foundation as much as a sure amount of imports in its commerce negotiations with the U.S., individuals acquainted with the matter mentioned.
Past this threshold, imported industrial items would entice the common stage of duties, the individuals mentioned, asking to not be recognized because the discussions are personal. The supply was made by Indian commerce officers visiting Washington late final month to expedite negotiations on a bilateral commerce deal anticipated by fall this 12 months, the individuals mentioned.
The 2 nations are prioritizing sure sectors to strike an early commerce deal earlier than the top of the 90-day pause on U.S. President Donald Trump’s tit-for-tat tariffs, the individuals mentioned.
Amid a contraction within the U.S. economic system, Trump advised Sunday that some commerce offers could possibly be sealed as quickly as this week, providing the prospect of aid for buying and selling companions looking for to keep away from greater U.S. import duties. Asian economies, together with South Korea, Japan and India are among the many nations main the race for reaching interim offers together with his administration.
An electronic mail to India’s Ministry of Commerce and Business was not instantly answered.
New Delhi’s supply was made after consulting export organizations, which mentioned that mutually eliminating duties on industrial items wouldn’t affect native industries or their competitiveness, the individuals mentioned.
“We are comfortable with the zero-for-zero tariff offer as Indian products are extremely price competitive,” Pankaj Chadha, chairman of the Engineering Exports Promotion Council. “I don’t see any impact if the duties are slashed. However, it has to be on a reciprocal basis.”
India exported prescribed drugs price $10.5 billion and engineering items price $19.1 billion to America in 2024-25, India’s commerce ministry knowledge confirmed.
Washington has additionally requested India to resolve its considerations round High quality Management Orders, which it considers a non-tariff commerce barrier for its exports, the individuals mentioned. The necessary high quality requirements, which lay down benchmarks that each native and overseas producers should meet earlier than promoting their items in India, have been criticized for being non-transparent and unfair.
India is prepared to rethink its present QCOs in sectors reminiscent of medical gadgets and chemical substances, and has supplied to signal a mutual recognition settlement with the U.S. underneath which each nations will settle for one another’s regulatory requirements and practices.
It’s unclear if these proposals will kind a part of the ultimate deal.
From simply 14 QCOs earlier than 2014, the quantity has gone as much as greater than 140 since 2017, a report confirmed.
This story was initially featured on Fortune.com
