Indian Prime Minister Narendra Modi is making preparations for further concessions in advance of his upcoming meeting with U.S. President Donald Trump, with the objective of enhancing American exports and averting a potential trade dispute, as reported by government officials to Reuters. Modi’s visit to the United States is scheduled for two days, commencing on February 12. Trump has previously expressed criticism of India’s trade practices and has urged for increased acquisitions of American security equipment to rectify the trade imbalance.India is contemplating reductions in tariffs across at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals, according to Reuters. These concessions are said to be in line with New Delhi’s domestic production initiatives. Among the concessions being considered are lowered tariffs on products that India primarily imports from the U.S. or those experiencing rising demand, such as dish antennas and wood pulp. The bilateral trade between the two nations surpassed $118 billion in the fiscal year 2023-24, with India maintaining a surplus of $32 billion.
Over the past decade, trade relations between the U.S. and India have grown significantly, with Washington increasingly recognizing New Delhi as a strategic counterweight to China. The forthcoming visit is intended to avert a trade standoff akin to the ongoing trade conflict between the U.S. and China, as noted by Reuters. Recently, India’s budget has reduced the average import tariff rate from 13% to 11% on various goods and has lowered taxes on luxury vehicles. Furthermore, India is currently assessing surcharges on over 30 products, including high-end automobiles and solar cells. The announcement of Trump’s proposed tariffs on steel and aluminum has impacted Indian markets, leading to declines in metal stocks. Benchmark indexes fell by 0.8%, while the metals index experienced a drop of 3%. An official from an industry body indicated that nearly 20% of India’s engineering goods exports, including steel and aluminum valued at approximately $25 billion, could be adversely affected if the proposed tariffs are implemented.
