India offers zero-for-zero tariffs on auto parts, steel from U.S.
People familiar with this issue said that India proposed a zero tariff on steel, car components and pharmaceutical preparations on a mutual basis until a certain amount of imports in its trade negotiations with the United States.
Besides this threshold, imported industrial goods will attract the normal level of duties, as people said, they ask not to recognize it because the discussions are especially. The people said that this offer was presented by Indian trade officials who visit Washington at the end of last month to accelerate negotiations on a bilateral trade deal expected by autumn this year.
The people said that the two countries are priority to some sectors to distribute an early commercial deal before the end of the 90 -day stoppage on US president Donald Trump’s tariff.
Amid a contraction in the American economy, Trump suggested on Sunday that some commercial deals can be closed as soon as this week, providing the possibility of relief to commercial partners who seek to avoid higher American import duties. Asian economies, including South Korea, Japan and India are among the countries that lead the race to reach temporary deals with its administration.
An email to the Indian Ministry of Trade and Industry was not immediately answered.
The people said that the New Delhi offer was presented after consulting the export organizations, which said that eliminating mutual duties on industrial goods will not affect local industries or their competitiveness.
“We are comfortable to display the zero tariff against zero as the Indian products are very competitive in prices”, “Pankaj Chadha, head of the Engineering Export Promotion Council.” I don’t see any effect if the duties are reduced. However, it should be on a mutual basis. “
India’s Ministry of Trade Ministry data showed that India exports medicines worth $ 10.5 billion and engineering commodities worth $ 19.1 billion for America in 2024-25.
The people said that Washington also asked India to resolve its concerns about quality control orders, which are a non -trivial commercial barrier to its exports. The compulsory quality standards, which have set the criteria that both local and foreign manufacturers must meet before selling their goods in India, being inappropriate and unfair.
India is ready to reconsider the current QCOS in sectors such as medical devices and chemicals, and offered the signing of the mutual recognition agreement with the United States, in which the two countries accept organizational standards and practices for each other.
It is not clear whether these proposals will form part of the final deal.
Of the 14 QCOS only before 2014, the number has risen to more than 140 since 2017, a report showed.
This story was originally shown on Fortune.com
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2025-05-06 05:58:00
