India-US trade pact hinges on preferential tariff terms, government signals

India will push for either competitive tariff advantages or zero duties on its products as a prerequisite for concluding a trade deal with the United States, according to statements made by senior government officials at a policy workshop.

At the National Workshop on Leveraging Free Trade Agreements, officials indicated that any India-US trade pact would need to position Indian exports competitively relative to rival nations. This means tariff rates offered to Indian goods must either undercut those available to competitors or be eliminated entirely to justify New Delhi's participation in the agreement.

The stance reflects India's approach to trade negotiations, where policymakers have emphasised the need for substantive commercial benefits to offset potential market opening in sensitive domestic sectors. Officials have signalled that the government will not accept trade terms perceived as disadvantageous compared to arrangements other countries have secured with the United States.

India and the United States have been engaged in trade discussions for an extended period, with negotiations touching on goods, services, and investment frameworks. The government's reiteration of its negotiating priorities suggests talks remain at a delicate stage, with New Delhi seeking to extract maximum commercial concessions before an agreement is signed.