India has proposed to significantly reduce its average tariff gap with the United States from nearly 13% to under 4%, seeking relief from current and potential US tariff hikes. This offer is part of ongoing efforts to finalize a comprehensive bilateral trade agreement.
The proposed deal includes preferential market access for Indian goods, including textiles, gems, pharmaceuticals, and agricultural products. In return, India expects the US to provide tariff exemptions and improved terms for Indian exports, which are critical for balancing trade relations.
With bilateral trade totaling nearly USD 129 billion, this agreement holds strategic importance for both nations. The negotiations aim to enhance economic cooperation, address trade imbalances, and open new avenues for investment and market access on both sides.