August 8, 2025

India is shaking up its trade game with the US as American negotiators are set to visit later this month. Despite President Donald Trump doubling tariffs, India is racing to seal a Bilateral Trade Agreement before an extra 25% duty slams the door in 21 days. Talk about a tight deadline! The government is working at lightning speed, with top economic ministries diving deep to review India’s market access offer. But there’s a clear no-go zone: agriculture and dairy remain India’s pet redlines. Prime Minister Narendra Modi has made it crystal clear, "the interests of farmers and the dairy industry will be protected." So, while the US aggressively pushes for wider access for its farm goodies like corn, soyabean, apples, almonds, ethanol, and dairy products, India stands firm. These demands would hit its farmers hard, something the government won’t allow. But India isn’t closing all doors; it’s carefully checking other sectors to see if market access can be sweetened. Did you know India enjoys a trade surplus with the US? There’s room to reduce this gap by, for example, ramping up energy imports from America. Plus, sourcing defence gear from the US is also under consideration, experts revealed on condition of anonymity. Mark your calendars! US trade reps will be in India from August 25 to 30, ready to hash out details. Meanwhile, the government is cooking up a sizzling three-pronged strategy to shield exporters from tariff troubles. One official said, "Work is going at a fast pace to bring some relief to exporters." How? First, tailor-made schemes under a new Export Promotion Mission will offer a long-lasting safety net to sectors facing challenges. Next, the plan includes diverting goods to different countries to dodge tariff pain. Exporters are already rolling up their sleeves, and the government is scouting ways to back this smart move. As the clock ticks, India is juggling protecting farmers, boosting exporters, and keeping US talks on track. Will this spicy mix bring trade harmony? Time will tell!

Read More at Economictimes →

Tags: India-us trade, Market access, Tariffs, Exports, Farmers, Trade agreement,