India's focus on securing a beneficial trade landscape is taking precedence over immediate tariff reductions in ongoing negotiations with the United States. Union Minister for Commerce and Industry Piyush Goyal has emphasized that India is not in a rush to finalize any trade agreement, underscoring the importance of establishing long-term partnerships built on mutual trust.
Goyal's statements come as India and the U.S. engage in advanced discussions aimed at forging a comprehensive trade deal. He highlighted that every agreement is evaluated based on the comparative advantage India will have vis-à-vis its trading partner, focusing not only on tariffs but a broader spectrum of trade benefits. The government has signaled that it is close to finalizing a bilateral trade deal with the U.S.
While in Berlin, Germany, Minister Goyal addressed concerns about high import duties levied by the U.S. on Indian goods. He described the tariffs, which can total 50 percent, as "unfair, unjustified, and unreasonable". These include a 25 percent penalty imposed by the U.S. for India's oil purchases from Russia, in addition to existing reciprocal tariffs. Goyal stated that India is actively seeking new markets to counter the impact of these tariffs.
Despite these challenges, India remains committed to engaging with the U.S. to reach a fair and equitable agreement in the near future. Goyal acknowledged the ongoing dialogue between the two nations, noting the recent visit of the Commerce Secretary to the U.S. for discussions with counterparts.
India has set an ambitious target of doubling trade in goods and services with the U.S. to $500 billion by 2030. Simultaneously, India is also in advanced stages of trade talks with the European Union, exploring opportunities for a free trade agreement encompassing market access, environmental standards, and rules of origin.
In Delhi, during a meeting with Export Promotion Councils, Goyal conveyed that required clearances for the Export Promotion Mission are nearly in place. This mission aims to address credit problems, promote products overseas, and assist companies in navigating trade barriers.
Goyal has asked his officials to facilitate discussions with the Reserve Bank of India (RBI), finance ministry and banks to address the problem, especially in sectors, such as textiles, which have been hit hard by tariffs. Some of the textiles exporters pointed to the 30 percentage point differential between Indian and other country exports to the US and said that buyers were demanding a steep discount, something that the commerce department has sought to discourage.
