Partial trade deal with US within 90 days likely; India to focus on three key fronts

The preliminary pact is expected to cover essential and non-sensitive products. The government is also considering a reduction of duties on several items imported from US.

India is trying to sign a partial bilateral trade agreement (BTA) with the US before the end of 90-day pause on higher tariffs announced by President Donald Trump, sources said on April 10.

In the next 90 days, New Delhi will pursue a three-pronged strategy aimed at invigorating its trade relations and protecting its domestic industry, a source said.

First front: US trade deal

The preliminary pact is expected to cover essential and non-sensitive products. The government is also considering a reduction of duties on several items imported from US.

In response, Washington is likely to offer New Delhi some permanent tariff relief.

A series of discussions have already taken place between the ministry of external affairs and the US administration. Prime Minister’s Office, ministry of commerce & industry, ministry of external affairs and ministry of finance are progressing steadily on the proposed deal.

Second front: EU and UK trade agreements

In a bid to diversify trade risks, India is accelerating its efforts to lock the free trade agreements with the European Union and the United Kingdom as soon as possible. The negotiations have already reached an advanced stage.

Third Front: Preventing dumping by China

To safeguard domestic markets, India is gearing up to implement a stringent mechanism to prevent dumping by countries such as China. This includes the strict enforcement of the Quality Control Order (QCO) to effectively curb Chinese imports. An inter ministerial group has been also formed to look into this aspects and take quick actions.