India takes a re-look at US market access offer; Sectors, barring farm, under review for BTA talks todayheadline

Despite US President Donald Trump doubling tariffs, India is hoping to conclude the Bilateral Trade Agreement later this month, well before the extra 25% duty comes into effect in 21 days.

3-pronged Strategy for exporters

The exercise is being undertaken at the highest levels of the government and economic ministries have been asked to look at their sectors to review India’s offer and if it can be improved, they said. However, market access in agriculture and dairy remains a redline for India, they said.

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PM Narendra Modi has said firmly that the interests of farmers and the dairy industry will be protected.

ET Bureau

The US wants greater market access for its farm products including corn, soyabean, apples, almonds and ethanol as well as dairy goods. India is resisting the demand as it will have a direct bearing on farmers. However, other sectors are being examined to assess if market access offers can be improved, said the people cited.

India enjoys a trade surplus with the US and has the scope to shrink this through, for instance, increased energy imports. Some of India’s defence needs can be also sourced from the US, said trade experts who did not want to be identified.

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The US trade negotiators are scheduled to be in India from August 25 to 30. Separately, the government is also working on a three-pronged strategy to ease the impact of higher tariffs. “Work is going at a fast pace to bring some relief to exporters,” said an official.

Goods diversion

Officials said that schemes under the proposed Export Promotion Mission would be tailor-made to help the sectors impacted by challenges that arise. These schemes will have a long-term footprint to ensure stability in trade.

“Another element pertains to diversion of goods to other geographies. Exporters are working on this and the government is examining opportunities to assist this diversion,” said an official.