India and US: The Quest for a Trade Deal

The Indian government is actively working to secure a trade deal with the United States. This move comes as the US government, led by President Donald Trump, has been demanding changes in trade policies. Trump has been pushing for lower tariffs and the removal of certain trade barriers.

Image: Republic

What's Happening Behind the Scenes?

To handle this situation, the Indian government has asked key ministries to figure out what concessions they can offer during the negotiations. They want to show that they are willing to work with the US to reach a fair agreement.

Here are some of the key points being considered:

• Boosting US Imports: India is thinking about increasing its purchases of American goods, especially energy and defense equipment. This could help balance the trade between the two countries.
• Lowering Tariffs: The government is also open to cutting tariffs on some industrial goods. They are especially considering this for intermediate goods, which are used to produce other products.
• Avoiding Sensitive Areas: India is keen to protect its agricultural sector. The government does not want to make concessions on sensitive items like soybeans, corn, and dairy products.
• "Early-Harvest" Deal: Experts believe that getting a quick, smaller deal, often called an "early-harvest" deal, is a good idea. This would help India maintain a trade advantage over China, which is also in talks with the US.

The final agreement might depend on a direct conversation between Prime Minister Narendra Modi and President Trump. The aim is to create a deal that benefits both nations and keeps their trade relationship strong.