India-US Trade Pact: Balancing Act Required

India and the US are in negotiations for a potential limited trade agreement. India's GTRI warns against a one-sided deal as discussions focus on tariff reductions, industrial goods, and agricultural market access. The US seeks concessions on FDI restrictions affecting firms like Amazon and Walmart.

India is negotiating a trade pact with the US, but trade analyst Global Trade Research Initiative (GTRI) urges that the deal must be balanced and safeguard India's economic interests. With India's chief trade negotiator currently in Washington DC, talks are at a critical phase.

The potential agreement could see India lowering tariffs on industrial products and offering limited access to US agricultural goods. Discussions involve potential concessions on tariffs and tariff-rate quotas on items such as ethanol and various nuts and fruits.

The US is likely to request India ease its foreign direct investment (FDI) restrictions in multi-brand retail, facilitating expansion opportunities for American companies. This trade negotiation is critical as it coincides with the expiration of a suspension on US-imposed tariffs.

(With inputs from agencies.)