India's Zero-for-Zero Tariff Strategy: A Better Alternative to Trade Negotiations

The Global Trade Research Initiative (GTRI) proposes a zero-for-zero tariff strategy to the US, aiming to eliminate tariffs on many industrial goods. This approach seeks to prevent harmful tariff hikes without the complexities of a full trade agreement, amidst concerns about US plans for reciprocal tariff increases.

India should consider a 'zero-for-zero' tariff strategy with the US to address proposed reciprocal tariff hikes by America. According to a report by the Global Trade Research Initiative (GTRI), this approach would alleviate trade tensions without necessitating a full bilateral trade agreement.

The GTRI advises India to identify product categories where it can eliminate duties without compromising domestic industries. If successful, the US would be expected to reciprocate by removing equivalent duties on its imports from India. This tactic, although technically violating WTO rules, is perceived as less damaging than a comprehensive trade deal.

The report highlights concerns over US President Donald Trump's track record with tariffs, suggesting potential ulterior motives behind the proposed hikes. It warns that if demanded, India should learn from China's retaliatory strategies and protect its national interests.

(With inputs from agencies.)