India is proceeding carefully in its trade negotiations with the United States, prioritizing the protection of its economic interests. Amid suggestions from other nations to consider bilateral trade pacts in response to former President Donald Trump’s tariff measures, Indian officials stress the importance of reaching a fair and mutually beneficial agreement. Leveraging its early start in trade discussions, India is firm on safeguarding sensitive sectors, despite U.S. pressure to reduce tariffs.
While the U.S. has pushed for broader inclusion of agricultural products—citing items like peanut butter—India is exploring options such as quotas and trade limits instead of full liberalization. The Indian government remains mindful that the U.S. also has areas of sensitivity, and aims to strike a balanced deal. At the same time, India is juggling multiple trade talks with seven countries, including the UK, EU, and Australia, which limits its capacity for additional negotiations despite growing interest from Gulf nations like Bahrain and Qatar.
India’s cautious stance reflects its intent to avoid rushed decisions and to insulate vulnerable sectors from potential disruptions. Officials believe the country is better positioned than some Asian peers to handle the fallout from U.S. tariffs. Although sectors like marine exports may face hurdles, India is exploring alternative markets such as the European Union. The Commerce Ministry is also expected to support exporters and prevent the influx of cheap, subsidized goods, especially from China, into the domestic market.
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