National Times Bureau: India is expected to avoid adopting the “zero-for-zero” tariff strategy in its trade negotiations with the United States, according to senior government officials. This strategy, where both nations eliminate tariffs on select categories of goods, is typically suited for economies with similar development levels—something India and the US don’t share.
Instead, India is leaning toward a broader trade package that balances reductions in tariffs with discussions on non-tariff barriers, investment flows, and services. The country is particularly cautious about giving up agricultural protections due to the sector’s critical role in rural livelihoods.
The trade negotiations aim to significantly boost bilateral trade, with both sides targeting a jump from the current $191 billion to $500 billion by 2030. India has shown readiness to slash tariffs in non-agricultural sectors like textiles, pharmaceuticals, and gems, signaling a willingness to open up without compromising its domestic food economy.
These developments come at a time when the US has imposed a 10% baseline tariff on most imports, with even higher rates for goods from countries like India. Indian exports currently face up to 26% duties in some cases. Despite the imbalance, New Delhi has refrained from retaliatory tariffs, instead opting to engage through diplomacy.
While US negotiators are reportedly pushing for broader market access, India is expected to press for tariff reductions that reflect the development gap between the two countries. Indian officials say they will “talk tough” on agriculture while remaining open to reasonable concessions elsewhere.
