India Wants to 'Future-Proof' U.S. Trade Deal with Rare Clause

India is proposing a unique 'forward most-favoured-nation' clause in trade talks with Washington to secure a promising trade deal with the United States. India hopes to avoid heavy reciprocal tariffs and become a major supplier, targeting quick negotiations despite complex challenges.

In a bid to solidify trade relations with the United States, India offers a unique 'forward most-favoured-nation' clause in ongoing negotiations. This provision, seldom offered by New Delhi, aims to secure favorable terms for the U.S., mirroring any better agreements India might arrange with other nations.

Efforts to finalize a swift trade deal have seen India making significant pre-emptive concessions. These strategic moves are designed to prevent the imposition of President Trump's proposed 26% reciprocal tariff. India hopes to position itself as a major supplier to the U.S., particularly in sectors vacated by China.

The deal, which could be established imminently, seeks to eliminate or reduce tariffs on 90% of tariff lines, with special focus on agricultural goods and politically sensitive sectors. In exchange, India is seeking beneficial tariffs for its labor-intensive industries, ensuring long-term commitments and trust in supply chain partnerships.

(With inputs from agencies.)