India is playing a high-stakes game of trade diplomacy, pushing for ironclad assurances from the United States against future tariff hikes as they race towards finalizing a bilateral trade agreement before the July 9th deadline. The stakes are high, as India is aiming for reciprocal duty cuts to boost its crucial labor-intensive sectors like leather and textiles.
The central demand from India revolves around achieving tariff stability. This isn’t just about avoiding new tariffs; it’s about securing a long-term commitment that ensures predictability and allows Indian businesses to plan for the future with confidence. The focus is particularly acute on industries employing large numbers of workers, where even minor tariff fluctuations can have significant repercussions.
Negotiations are intensifying as both sides strive to reach an agreement that offers preferential trade advantages. The success of these talks will hinge on the ability to secure the desired guarantees from the US, ensuring that any finalized deal delivers sustainable benefits for Indian exporters and workers.
