India proposes zero-tariff deal with us

New Delhi

In a strategic effort to strengthen trade ties with the United States, India has proposed a “zero-for-zero” tariff deal on selected American imports, including steel, auto components, and pharmaceuticals. The proposal is part of ongoing discussions aimed at concluding a bilateral trade agreement with Washington before the autumn.

The proposed deal would offer duty-free access to imports within a specified quota, with volumes beyond the limit subject to standard Indian tariffs. India reportedly presented this offer during trade talks in Washington in late April. This move comes in response to recent US tariff announcements, which were temporarily paused on April 9 to allow room for negotiations with key partners, including India. Trade discussions between the two nations are progressing, with the US showing increasing interest in finalizing new deals under its revised tariff regime. While no formal agreements have been reached, India is emerging as a priority in Washington’s trade strategy, alongside countries like Japan and South Korea. With President Trump’s deadline for implementing the paused tariffs approaching, both nations are under pressure to conclude talks swiftly.

A finalized India-US trade deal could provide significant benefits for both countries, easing market access and offering protection for key domestic industries from potential trade barriers. This deal would represent a significant step forward in enhancing India-US economic relations.