Amid growing trade tensions and tariff threats from former US President Donald Trump, India’s domestic industry has expressed its willingness to consider tariff reductions on products of strategic interest to strengthen the proposed bilateral trade agreement with the United States. Indian industry leaders are also encouraging the Government to negotiate reciprocal actions from American authorities for products of interest to India.
To expedite the process, Piyush Goyal, India’s Minister of Commerce and Industry, is currently in the United States to engage in discussions with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. The goal is to explore feasible agreements within the timeline of September–October, as outlined during a meeting between Prime Minister Narendra Modi and Trump last month.
The apparel sector has played a key role in these discussions, identifying over 50 goods of importance to India. Industry representatives have proposed reducing or even eliminating tariffs on specific categories, many of which fall under the Production Linked Incentive (PLI) scheme backed by the Indian Government.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), emphasized the potential benefits of tariff adjustments. He stated, “In comparison to the U.S., the Government may want to lower the applicable customs charge on major clothing items.” Thakur further suggested that the Government consider a “zero-for-zero” deal, which involves removing tariffs on specific categories in exchange for reciprocal actions by the trading partner. He added that such a measure could be particularly relevant for clothing items of strategic importance, noting that India imports a relatively small amount of clothing from the U.S.
The proposed zero-for-zero strategy aims to strengthen trade ties while ensuring mutual benefits for both nations, aligning with India’s broader goal of enhancing its position in global trade. The next steps in the discussions are expected to clarify the framework for the trade deal, potentially opening new opportunities for both countries.
