India reworks US trade offer, farm sector off-limits as talks loom
New Delhi eyes tweaks in market access pitch before US delegation’s August visit
Government readies three-pronged plan to soften tariff blow, seeks new export markets
India reworks US trade offer, farm sector off-limits as talks loom
New Delhi eyes tweaks in market access pitch before US delegation’s August visit
Government readies three-pronged plan to soften tariff blow, seeks new export markets
India is taking a fresh look at its market access offer to the US, just weeks before a high-level US trade delegation lands in New Delhi for trade negotiations, the Economic Times reported, citing sources.
Despite President Donald Trump’s move to double tariffs on Indian goods, New Delhi is still hoping to wrap up a long-pending Bilateral Trade Agreement (BTA) later this month, ideally before the additional 25% duty comes into force in just 21 days.
The review, officials say, is being driven from the top, with key economic ministries asked to re-examine their sectors to see whether India’s offer to Washington can be sweetened. Agriculture and dairy, however, remain off-limits. Prime Minister Narendra Modi has been clear that farmers and the dairy industry are not to be put on the negotiating block.
Washington has long pressed for wider access for US farm exports, with corn, soyabeans, apples, almonds, ethanol and dairy products among the list. India has resisted, arguing that such concessions would directly hit rural livelihoods. That leaves other areas on the table, from energy imports, which could help narrow India’s trade surplus with the US, to sourcing more defence equipment from American suppliers.
The US delegation is due in India from August 25-30, with both sides keen to inject momentum into talks. In parallel, the Indian government is crafting a three-pronged strategy to blunt the impact of higher tariffs.
One strand, under the proposed Export Promotion Mission, will roll out sector-specific schemes to help industries facing the sharpest headwinds. These are designed to be long-term measures, aimed at ensuring stability rather than quick fixes.
Another focus is redirecting goods to alternative markets. Exporters are already exploring new geographies, and the government is weighing ways to support this shift, be it through policy tweaks, trade facilitation, or market intelligence.
For now, the situation at hand presents a delicate balancing act of keeping doors open to Washington while protecting domestic interests and making sure exporters have somewhere else to knock if those doors close.