India Proposes Zero-Duty Tariff Lines in Trade Talks with US

Image Source : Business Standard

India has put forward a proposal to eliminate tariffs on select goods under a potential trade agreement with the United States. The move is aimed at bridging the tariff gap and fostering stronger economic ties between the two nations.

Key Developments:
- India has offered zero-duty access on specific tariff lines, compared to the current 3 percent tariff applied to certain imports.
- The proposal is part of broader trade negotiations, with India seeking exemptions from all current and future tariffs imposed by the US.
- The discussions focus on key sectors, including steel, auto components, and pharmaceuticals, where India aims to secure reciprocal tariff reductions.
- India’s trade representatives have emphasized the need for a balanced agreement that benefits both economies while addressing concerns over non-tariff barriers.
- The latest round of negotiations on May 9, 2025, saw India reaffirm its commitment to reducing the tariff gap and pushing for a comprehensive trade pact.

Strategic Implications:
- The zero-duty offer is expected to accelerate negotiations, with both sides aiming to finalize a trade pact by the fall of 2025.
- The agreement could pave the way for increased bilateral trade, supporting India’s goal of doubling trade volumes with the US by 2030.
- India has also proposed a mutual recognition framework for regulatory standards, ensuring smoother trade operations across industries.

Sources:
Economic Times, IndBiz, Bloomberg, MSN News.