India Urged to Tread Cautiously in US Trade Talks: Lessons from UK Pact

India is advised to carefully negotiate a trade agreement with the US, learning from the US-UK deal which shows possible future strategies. The deal presses India on tariffs, notably on sensitive products. India must ensure reciprocation and balance, avoiding one-sided agreements focused purely on political gain.

India should approach its trade negotiations with the United States with caution, following insights gleaned from the recent US-UK agreement, suggested the Global Trade Research Initiative (GTRI) on Saturday. The GTRI underscored the need for India to ensure a balanced and reciprocal trade deal, avoiding political motivations.

The US-UK trade deal, announced on May 8, serves as a potential template for how Washington might structure similar agreements with major partners like India. According to GTRI, the UK granted significant tariff concessions to the US, while receiving much less in return, showcasing a disparity that India should avoid.

As India contemplates its own negotiations, it faces pressure to reduce tariffs on sensitive agricultural products, automobiles, and to consider large-scale purchases in areas like oil and LNG. Experts advise India to aim for a fair, sovereign approach in its US trade talks, emphasizing the risks of any imbalanced agreements.

(With inputs from agencies.)