The Indian government is actively engaging with the United States to negotiate a trade agreement that benefits both countries. Commerce Secretary Rajesh Agrawal stated that discussions are ongoing, with Ambassador Gor recently visiting New Delhi as part of the engagement.
Impact of US Tariffs on Indian Exports
Currently, the US imposes tariffs of up to 50% on certain Indian goods, with a 25% portion applied as a penalty for India’s continued purchase of discounted Russian crude oil. Despite these tariffs, sectors not affected continue to grow steadily. Authorities are closely monitoring industries facing tariff challenges, as approximately 45% of exports remain unaffected, while the remaining 55% may experience some impact.
India’s Stance on Energy Imports
India has expressed willingness to expand oil purchases from the US if offered at competitive prices. Past US energy imports by India have reached around $22–23 billion, and there is potential to increase this by an additional $12–13 billion. Agrawal highlighted India’s interest in diversifying its energy sources to reduce dependency on any single supplier.
Outlook for Trade and Growth
Despite tariff-related challenges, cumulative exports to the US remain positive, and growth is expected to continue. The impact of new tariffs is anticipated to begin from September–October, with both countries actively exploring solutions to minimize trade barriers and foster stronger economic ties.
Key Takeaways
- India-US trade talks are ongoing, aiming for mutually beneficial agreements.
- India is open to increasing US oil imports if prices are competitive.
- About 45% of Indian exports to the US are unaffected by high tariffs.
- Cumulative exports remain positive despite challenges, with growth expected.
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