India US seek common ground as trade tensions escalate

India’s trade relationship with the United States has remained a focal point, especially as the US retained its position as India’s top trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. India’s trade surplus with the US stood at $41.18 billion for the fiscal, driven by strong exports in sectors such as pharmaceuticals, textiles, and gems and jewellery.
Efforts are underway to push bilateral trade to $500 billion by 2030. India is negotiating for duty concessions on labour-intensive goods like leather, garments, chemicals, and seafood, while the US seeks lower tariffs on products including electric vehicles, wines, petrochemicals, and genetically modified (GM) crops.
However, regulatory challenges remain. India has maintained restrictions on GM crop imports, citing biosafety and environmental concerns. Still, New Delhi has shown some flexibility, indicating a willingness to import certain non-GM products such as Alpha alpha hay—a high-protein cattle feed.
In a conciliatory move, the US on April 10 temporarily suspended additional tariffs on Indian exports for a 90-day period ending July 9. This gesture followed Washington’s broader tariff overhaul announced on April 2, which imposed sweeping duties on imports from nearly 60 countries. Indian exports across sectors—ranging from seafood to industrial metals—were hit with additional tariffs of up to 26%, intensifying concerns for India’s export competitiveness.

(Business Correspondent)