India-US trade deal: On Thursday, US President Donald Trump claimed that India had proposed a trade agreement with "no tariffs" or "zero tariffs". Trump stated that India has proposed eliminating import duties on American products. Trump stated that Indian authorities have proposed a proposal that would effectively eliminate all import taxes on US merchandise.
The Indian government hopes to reach a trade agreement with the United States during the 90-day suspension declared by Trump on April 9 regarding tariff increases for major trading partners, which included a 26% duty on India.
"It is very difficult to sell in India, and they are offering us a deal in which they are willing to literally charge us no tariffs", Trump said in a meeting with executives in Doha.
The United States remains India's primary trading partner, with bilateral trade totaling approximately $129 billion in 2024. India currently has a favourable trade position, with a $45.7 billion trade surplus with the United States.
According to two sources familiar with the bilateral negotiations, India has offered to reduce its tariff gap with the US to less than 4% from the current 13% in order to avoid Trump's current and upcoming tariff hikes. Both nations are aiming for a quick resolution.
Following the Trump administration's recent 'breakthrough deal' with Britain, which resulted in lower British duties on US goods while maintaining America's 10% baseline tariff on British imports, a potential template for talks with other trade partners emerged.
According to two Indian government officials directly involved in the talks, New Delhi has proposed removing duties on 60% of tariff lines during the first stage of negotiations.
