The report highlights that the nation has been working to keep away from commerce disputes with the US. In its latest Union Price range, the federal government diminished import duties on a spread of merchandise, together with electronics, textiles, and high-end bikes.
Moreover, India has taken steps to strengthen diplomatic ties with the US, comparable to agreeing to repatriate over 100 unlawful Indian immigrants. Now, India is contemplating additional tariff reductions on luxurious autos, photo voltaic cells, and chemical compounds as a part of its technique to keep up clean commerce relations.
Nomura stated “India is contemplating decreasing tariffs on over 30 objects and getting ready to extend purchases of US defence and vitality”.
The report additionally said that if India doesn’t scale back greater tariffs on American items, the US might reply with related duties on Indian exports.
For instance, if India levies a 25 per cent tariff on US cars, Washington may impose an equal tariff on Indian autos. US President Donald Trump, who has criticized India’s commerce insurance policies previously, has pushed for “reciprocal tariffs” to make sure truthful remedy of US exports.The report identified that India has comparatively greater tariff charges in comparison with different nations, making it susceptible to US retaliatory measures. The US is India’s largest export vacation spot, accounting for about 18 per cent of its whole exports, which amounted to about 2.2 per cent of India’s GDP in FY24.India’s commerce surplus with the US has been rising in recent times, reaching practically USD 38 billion in 2024. Key Indian exports to the US embody industrial equipment, gems and jewelry, prescribed drugs, fuels, iron and metal, textiles, autos, and chemical compounds.
Trump has beforehand known as India the “tariff king” and has emphasised the necessity for India to purchase extra American-made safety gear. In latest discussions with Prime Minister Narendra Modi, he has pushed for a “truthful bilateral buying and selling relationship.”
To stop the imposition of upper reciprocal tariffs, the report said that India is exploring methods to achieve an settlement with the US. Within the medium time period, the nation can be seeking to strengthen financial ties with Washington and appeal to extra American provide chains to arrange operations in India.
Prime Minister Narendra Modi assembly with President Trump on Friday in Washington is predicted to debate tariffs and commerce.