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Home Business & Finance Economic Policies

India to be patient in trade talks, to protect dairy, agriculture; Curb Chinese dumping: Officials todayheadline

April 5, 2025
in Economic Policies
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New Delhi: India will negotiate its trade agreements carefully and patiently in the wake of the tariffs imposed by the Donald Trump administration and protect its sensitive sectors like dairy and agriculture, officials said Saturday, citing the example of the US which is sensitive about peanut butter.

“We have to be patient. Trade pacts do not happen overnight. It is a careful and steady process. Things are analysed carefully,” an official said on the condition of anonymity, adding that a slight impact on demand in the US could be a little challenging.

India has “emerged a winner” following the reciprocal tariffs imposed by the United States, officials said, pointing out that the country has a first mover advantage compared to its competitors owing to of the Bilateral Trade Agreement that the two are negotiating and because Indian exporters are better positioned to deal with the additional US tariffs.

They said the country will take all measures within the World Trade Organization (WTO) framework to check dumping of goods from countries such as China which have been slapped with steeper tariffs. “The government is there to protect domestic industry from any possibility of dumping of goods in such a situation,” said another official, who did not wish to be identified.

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While the US has imposed 26% reciprocal tariffs on India, it has levied 34% additional import duties on China. India is also likely to gain from the US-China trade war, according to officials.

While certain exports such as fisheries could lose market share to Ecuador, which faces lower reciprocal tariffs, India can export more of the product to the European Union, they said.

Limited Impact on Pharma Exports

New Delhi anticipates only a small impact on its pharmaceutical exports due to the new American tariffs imposed by the Trump administration

Washington could impose tariffs similar to what it has levied on steel imports.

FTA talks with UK
India is currently negotiating a free trade agreement (FTA) with the United Kingdom, with “very good” progress on the talks, and there are similar requests from other countries including Bahrain and Qatar.

Work is also underway to provide support to exporters who would be impacted by the US tariffs. Goods exports growth in 2024-25 is expected to be slightly higher than that in the previous fiscal and 2025-26 growth will be higher than in 2024-25, said an official.

India’s goods exports in the April 2024-February 2025 period amounted to $395.63 billion.

India’s competitor Vietnam is facing 46% US tariffs, Indonesia 32% and Thailand 36%.

Reaching out to exporters
Officials also said that the commerce department is reaching out to domestic exporters regarding the US tariffs.

“Work is progressing to prepare the export promotion mission for extending support measures to exporters,” said the official.

Tags: AgricultureBilateral Trade Agreement India USChinesecurbdairydumpingIndiaIndia FTA with UKIndia trade dealsIndian dairy agriculture protectionIndian exports support measuresofficialspatientPharmaceutical exports IndiaProtecttalkstodayheadlinetradeUS China trade war effectsUS reciprocal tariffsUS tariffs impactWTO framework dumping measures
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