The break is a “gold opportunity” to diversify the export markets of India and to reduce dependence on the United States, especially since the world commercial landscape is becoming more and more volatile, the officials said. The break applies to all countries, with the exception of China – a decision that has rekindled tensions between Washington and Beijing, signaling the start of what many call Trade War 2.0.
April 8, Mint India indicated that India was looking for a suspension of the 26% prices imposed by the United States on Indian products until a bilateral trade agreement (BTA) is finalized by September-October 2025.
The current commercial program of India includes free trade agreements (AFF) with the European Union, the United Kingdom, New Zealand, Australia, Peru and the ASEAN group of Southeast Asian Nations.
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“New Delhi hopes to finalize several of them in the 90 -day American tariff window – expanding market access and stimulating the resilience of the supply chain,” said one of the two government officials mentioned above. Both are directly involved in the process.
“This is a golden opportunity for India. We are recaliting our export strategy and explore new markets to diversify our export destinations,” added this official.
The requests sent to the Ministries of Commerce and External Affairs to request comments for history have remained unanswered.
India has already concluded the 10th round of the ALE talks with the EU and launched discussions with the United Kingdom in March. “We are also progressing positively with the United States on a BTA, and taking into account the receptivity on the American side, we hope to seal the pact earlier than the chronology of the fall 2024,” said the same official.
India has dealt with the problem of prices with great understanding from the start, said the Minister of Commerce and Industry, Piyush Goyal, told journalists, news agency Ani reported Thursday in Mumbai.
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“Prime Minister Narendra Modi and President Donald Trump decided in February to conclude a BTA which will simplify bilateral trade, increase bilateral trade by twice and a half times to $ 500 billion, create more jobs for our citizens and strengthen the economy. I think India was in any case in this breed and the speeches are growing well,” said Goaly.
However, trade experts warned against precipitation in a BTA full with the United States, given Trump’s aggressive and transactional approach. “Such an agreement could put pressure on India to open sensitive sectors such as agriculture, electronic commerce, pharmaceutical patents and intellectual property,” said Ajay Srivastava, co-founder of the Global Trade Research Initiative.
Instead, Srivastava has recommended a limited “zero for zero” rate for all goods, with the exception of agricultural cars and products. “This would align better with the long-term interests of India and would reflect what Europe has offered to the United States,” he said.
The United States is the largest export market in India. During the 2010 financial year, India exported goods worth $ 77 billion in the United States, which represented around 18% of Indian exports that year. India imported goods worth $ 42.2 billion in the United States that year, 6.2% of Indian imports that year.
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The massive price imposed by the United States against China also left India to find ways to tighten its guard against any indirect Chinese import, including those that can be thrown. The officials confirmed that the goods took place in the countries of the Anase and other partners of the ALE are carefully examined for any attempt to hide their origin.
“India remains prudent to become a stolen door for Chinese supply chains,” said the second manager. “Although we deepen global partnerships, we also intensify the application to restrict disguised Chinese goods.”
Change in American trade policy comes in the middle of spiral tensions with China. Although initially presented as a large price push, Trump’s decision to distinguish China for a rate of 125% marks a pivot with echoes of their 2018-2023 trade war.
This previous phase failed to lower China’s export. While American imports from China dropped $ 81.56 billion during the period, China’s world exports jumped more than $ 1.1 Billion, reflecting its resilience.
Exports warned against a blow to India on two fronts
“The 90-day break on reciprocal prices offers short-term alleviations, but the continuation of a flat right of 10% increases the cost of Indian exports to the United States and erodes our price advantage on competitors such as Vietnam and Bangladesh,” said Bipin Sapra, taxed partner, Ey India.
“With the growing American trade war and the imposition of considerably high prices on Chinese goods, there is a window of opportunity for India to attract global supply chains and to position itself as a favorite destination. However, we must remain cautious about the risk that China redirect exports to India and other emerging markets, which may require anti-emouting measures. Their price, supply and export chain strategies to sail in an increasingly complex global trade environment, “he added.
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Pawan Gupta, Managing Director and Co-founder of Fashinza, a B2B fashion supply chain startup, said: “The 90-day break from prices is a strategic decision. With world buyers actively diversifying from China. Destination.
“However, to really capitalize on this moment, Indian manufacturers must intensify their capex and invest in large -scale mass manufacturing configurations. If it is well exploited, this period could open the way for long -term supply chain partnerships, to a greater export traction and a stronger point of view in world trade.”
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