Exporters are pinning hopes on the ongoing negotiations for a bilateral trade agreement will keep India out of the reciprocal tariffs that the US plans to impose from April 2.
According to several industry sources, Indian exporters are hopeful that the negotiations and promise of tariff cuts on US imports will help India escape the reciprocal tariffs that US President Donald Trump has threatened to levy on imports to the US.
Most domestic exporters have also shown support for a cut in tariffs as well as a zero for zero tariff strategy as part of the bilateral trade agreement discussions. Under a zero for zero tariff strategy, two countries identify specific products and withdraw tariffs on them.
Recently, the Confederation of Indian Textile Industry (CITI) has suggested a zero for zero tariff agreement with the US in the textile and apparel sector.
According to sources, this is one of the issues that may be discussed at the meeting of commerce ministry with export promotion councils on Thursday. Commerce and industry minister Piyush Goyal, who has recently returned from a trip to Washington to discuss the bilateral trade agreement, will also attend the meeting with export promotion councils.
Sources indicated that this is a regular meeting of the commerce ministry to review issues faced by exporters and strategies to boost exports. According to sources, the government could also consider providing more incentives to exporters to help them tide over the current environment of global uncertainties amidst a potential tariff war.
During his US visit last week, Goyal met US Trade Representative (USTR) Jamieson Greer and US Secretary of Commerce Howard Lutnick to initiate discussions around the proposed bilateral trade agreement. India and the US have agreed to double bilateral trade to $500 billion by 2030 and negotiate the first phase of a bilateral trade agreement by the fall of 2025.
While Goyal may visit the US again, the commerce ministry is also in talks with stakeholders and across sectors to understand areas and products where India can offer lower tariffs to the US as part of the trade deal.
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2025-03-12 13:34:52
