As the United States imposes reciprocal tariffs on Indian exports, government officials in New Delhi are meticulously analysing their potential impact on trade and Indian exporters.
The government is flexible and open to have all options on table, which could mean reducing duties through Bilateral Trade agreement, (BTA) likely to be finalised by fall, so as to have reduction in reciprocal tariffs, sources shared with Business Today TV.
Unlike other nations, India finds itself in a unique position. “India has a first-hand advantage, as Washington only visited New Delhi,” an official said.
The government sees this as a moment to strengthen India’s position in global trade, particularly with China’s reciprocal tariffs now in effect. “As global supply chains shift in response to escalating trade disputes, India sees a silver lining,” sources added.
India has also seen interest from various other new countries for trade friendship, after the retaliatory approach.
However, India has ruled out joining ASEAN in any collective response against the tariffs but is keeping all options open regarding reciprocal tariffs and duty reductions, said an official.
Free trade agreements with Gulf nations, including Bahrain and Qatar, are also under consideration to diversify India’s trade partnerships, according to sources.
India remains vigilant against potential dumping of excess goods from countries affected by US tariffs. Officials have assured that direct and indirect measures will be taken if foreign producers attempt to flood Indian markets.
The government is particularly focused on protecting its dairy and agricultural sectors, ensuring that trade negotiations do not undermine local farmers. At the same time, Indian officials are engaging with top trade envoys worldwide to expand India’s global export share, sources said.
With US tax cuts and global energy prices providing a favorable environment, India remains cautiously optimistic. While the Trump administration is yet to impose punitive tariffs on the pharma sector, Delhi expects any price impact to be minimal. The goal remains clear “turning challenges into opportunities for Indian exporters,” said an official.
