India likely reviewing its market access offer to the US after Trump's tariffs: Report

U.S. President Donald Trump and PM Narendra Modi

India is reviewing its earlier offer of market access to the US, and is considering if it can be made more attractive for the trade deal negotiators, while keeping the agri space out of the purview, the Economic Times reported on August 8 citing people familiar with the matter.

This consideration of a review comes after US President Trump doubled import tariff on India to a 50 percent, prompting the government to call them ‘unfair and unjustified’.

The report added that India is hoping to conclude the Bilateral Trade Agreement (BTA) with US before Trump’s tariffs double to 50 percent by the end of the month. The highest levels of government and economic ministries have been asked to look at their respective sectors, and see if India's offer can be improved, the report cited sources as saying.

However, India remains firm on its restrictions for market access in agriculture and dairy sectors, the report added. The country is strongly resisting the demand, as it may have a direct impact on the farmers.

Moneycontrol couldn't independently verify the report.

After Trump announced the additional 25 percent tariff on Indian exports, Prime Minister Modi on August 7 said he 'won't compromise on farmers' interests and is ready to pay the price'.

Speaking at the MS Swaminathan Centenary International Conference, PM Modi had said, "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it and I am ready for it. India is ready for it."

Last week, Trump threatened that he would penalise India for buying Russian oil and arms and referred to both countries as 'dead economies', a remark that caused much discomfort in New Delhi.

As part of the tariff negotiations, the Modi government had offered to remove levies from US industrial goods and said it would increase defence and energy purchases, Moneycontrol had reported, while also offering to scale back levies on imported American cars. It, however, refused to remove duties from farm and dairy products.

The US has been seeking greater access for its agricultural and dairy products in the Indian market, while New Delhi remains protective of its domestic farming sector, which supports a large rural population and operates under minimum support price (MSP) frameworks.

The Ministry of External Affairs (MEA) has called Wednesday’s tariff "unfair, unjustified and unreasonable" and said its imports of Russian oil are based on its objective of securing the energy needs of its nation of 1.4 billion people.

Describing the US action as "deeply regrettable", the MEA noted that several other countries continue to import Russian oil in line with their national interests. It said that singling out India for punitive measures was discriminatory and reaffirmed that the government would take “all necessary steps to safeguard the country’s national interests”.

Earlier this month, Moneycontrol reported that India is looking to diversify exports to European Union (EU), Peru and Chile in a bid to avert an adverse impact on labour-intensive exports following Trump’s tariffs. It also plans to fast-track talks on free trade agreements (FTAs) with the EU as well as Chime and Peru, a source in the know told Moneycontrol.