India-US Trade Talks: Navigating Tariffs and Building Bridges

A report by Nirmal Bang Equities suggests a potential India-US trade deal could alleviate issues stemming from Trump's tariffs. While current tariffs have a limited direct impact, concerns remain over potential tariffs on key Indian exports. India is taking steps to address these challenges and improve trade relations.

According to a report by Nirmal Bang Equities, a prospective trade agreement between India and the United States could help mitigate the adverse effects of tariffs imposed under the Trump administration. With President Donald Trump continuing to levy tariffs on global trade, India feels the strain, prompting government action.

The report emphasizes that while India is not exempt from these tariffs, negotiations might ease market access issues for both nations. As Trump hints at imposing reciprocal tariffs on India, a decision anticipated by April 2nd, the existing 25 percent tariff on steel and aluminum imports has minimal direct impact due to the small share of these metals in India's US exports.

Many fear tariffs on key Indian exports like electronics, automobiles, and textiles could have more severe repercussions. While some chemical exports may face hurdles, pharmaceutical products should remain unaffected given their essential status in the US. Nevertheless, facing potential impacts on approximately 30 percent of its merchandise exports, India is actively seeking solutions, including budgetary measures aimed at easing trade tensions and fostering stronger bilateral trade relations with the US.

(With inputs from agencies.)