The Global Trade Research Initiative (GTRI) has cautioned India to ensure a balanced and reciprocal approach in its proposed trade deal with the U.S. Drawing comparisons to the U.S.-UK agreement, GTRI highlighted the risk of India making sweeping concessions without equivalent returns.
Concerns include potential pressure on India to reduce tariffs on sensitive agricultural products, commit to large purchases of U.S. goods (like oil, LNG, aircraft), and accept terms on government procurement and data flows. GTRI stressed the need for India to avoid politically driven deals and prioritize sovereignty and economic interests.
A team of Indian officials is expected to visit Washington for further negotiations, aiming to secure a comprehensive and equitable trade framework.
US-China Agree to Slash Tariffs, India Watches Cautiously
The US and China have agreed to a significant reduction in tariffs for a 90-day period, bringing down tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US goods from 125% to 10%. This temporary truce, following negotiations in Geneva, signals renewed cooperation and ongoing discussions between the two global powers.
For India, this development poses challenges. Indian exporters who had benefitted from the tariff gap between the US and China now face shrinking advantages. Experts warn that this could impact India’s competitiveness, especially in sectors like textiles, chemicals, and leather. A proactive trade deal with the US is seen as vital to maintaining India’s market position.
The move also indicates a potential shift in global supply chains, with Washington re-engaging with Beijing. Indian policymakers are urged to expedite negotiations for a US-India bilateral trade agreement to safeguard existing trade advantages.
Indian Medtech Industry Seeks FTA Advisory Body
With trade talks intensifying with the US and EU, India’s medical technology sector has called for the creation of a joint government-industry FTA advisory body. The aim is to effectively tackle non-tariff barriers (NTBs) in future trade negotiations, which often impact market access for Indian medical devices.
Currently, industry feedback is routed through the Department of Pharmaceuticals and Pharmexcil, but stakeholders believe a formal advisory body would provide a more structured approach. Leaders from Aimed, MTaI, and FICCI emphasized the need for such a body to represent the industry’s concerns, particularly regarding NTBs and global competitiveness.
This comes in the wake of India-UK FTA talks, with medical device players pushing for stronger representation in ongoing and future trade deals.
Trump Announces Drug Price Cuts, Potential Impact on Indian Pharma
US President Donald Trump has signed an executive order mandating drugmakers to lower prescription drug prices within 30 days. If a deal isn’t reached, the government will impose pricing linked to rates paid by other countries, aiming to equalize costs.
The directive primarily targets Medicare and Medicaid, with potential repercussions for global pharmaceutical supply chains. Indian pharma companies, major exporters of generics to the US, could face price pressures and tighter margins as a result of this policy shift.
Industry groups have expressed concern that the move could undermine research investments and make the sector more reliant on imports, including from China, which raises questions about the long-term impact on Indian pharmaceutical exports.
India-UK FTA: Time for India to Reconsider Its Trade Strategy
India’s recently concluded trade deal with the UK has drawn criticism for crossing several red lines. The agreement includes unprecedented commitments like slashing automobile import duties, opening up government procurement, and weakening patent protections — areas where India had traditionally maintained strong safeguards.
Key concerns highlighted include the risk to India’s auto industry, dilution of procurement preferences for Indian firms, and threats to affordable medicines due to stricter IP regulations. Analysts argue that while the deal benefits UK companies, it compromises India’s policy space and domestic manufacturing priorities.
The article calls for a pause and reassessment of India’s FTA approach, especially with upcoming negotiations with the EU and the US, to prevent irreversible concessions that could hurt India’s economic autonomy.
US-China Truce Narrows India’s Export Edge
Following the US-China tariff truce, India’s export advantage is diminishing. The US has reduced combined tariffs on Chinese goods from 145% to 30%, effective for 90 days, while China reciprocates by cutting tariffs on US goods to 10%.
Although Indian goods still face only a 10% US tariff, the narrowing gap reduces India’s competitive edge. With the temporary pause on reciprocal tariffs, Indian exporters are concerned about losing ground in key sectors like garments, plastics, and chemicals.
Trade experts emphasize the need for India to leverage this window to finalize preferential trade agreements with the US, ensuring long-term stability and protecting its share in global markets.
Indian Apple Growers Oppose Turkish Imports Amid Geopolitical Tensions
Indian apple growers are urging the government to halt imports of apples and other horticultural products from Turkiye due to the country’s stance during the recent India-Pakistan conflict. In FY 2023-24, India imported a record 160,000 tonnes of apples from Turkiye.
Growers from Himachal Pradesh, Jammu & Kashmir, and Uttarakhand, represented by the Hill State Horticulture Forum, are leading this demand. They argue that continuing trade with Turkiye undermines national interests.
The request is aimed at Union Agriculture Minister Shivraj Singh Chouhan and Commerce Minister Piyush Goyal, seeking an immediate ban on Turkish horticultural imports to protect local farmers and the Indian economy.
Andhra Pradesh Aims to Build Port-Based Economy
Chief Minister N. Chandrababu Naidu has unveiled a strategic plan to develop a port-based economy by leveraging Andhra Pradesh’s 1,000 km coastline. The initiative includes setting up a port or fishing harbour every 50 km to spur economic growth and job creation.
Key projects include a shipbuilding and repair cluster at Dugarajapatnam in Nellore district, with an estimated investment of ₹13,540 crore from the Centre and land contribution from the state. The project could attract up to ₹26,000 crore in total investment and generate 30,000 jobs.
Naidu also emphasized making cargo movement via Visakhapatnam Port more cost-effective and exploring river cruise tourism circuits to boost the state’s tourism and local economies.
Major Indian Ports Record 4.3% Cargo Handling Growth in FY25
India’s major ports handled 855 million tonnes of cargo in FY 2024-25, a 4.3% increase from the previous year. The growth was driven by higher container throughput (10%), fertilizer cargo (13%), POL cargo (3%), and miscellaneous commodities (31%).
Paradip Port Authority and Deendayal Port Authority both surpassed the 150 MT cargo handling mark for the first time, reflecting their importance in India’s maritime trade network.
Key commodities handled include petroleum, oil, and lubricants (254.5 MT), containers (193.5 MT), and coal (186.6 MT). Increased private investments and land allocations for industrialization are boosting confidence in India’s port-led development.
India Prepares $1.9 Billion Tariff Retaliation Against US Imports
India is considering imposing $1.9 billion in retaliatory tariffs on US imports if a resolution isn’t reached regarding safeguard duties on Indian steel and aluminium exports. The move comes ahead of Commerce Minister Piyush Goyal’s trade delegation visit to Washington.
India has notified the WTO of its intent, leaving a 30-day window for discussions. Potential US products targeted include agricultural goods, petrochemicals, and high-end medical devices.
The retaliatory measures are a response to the Trump administration’s extension of additional tariffs on steel and aluminium imports. India seeks to finalize a trade deal with the US within the 90-day tariff pause, aiming to protect domestic industries and maintain trade balance.