**Washington:** India has put forward a plan to scrap tariffs on steel, auto components and pharmaceuticals in ongoing trade talks with the US, proposing volume limits on zero-tariff imports. Both nations aim to finalise a deal by autumn 2023 amid efforts to boost bilateral economic ties.
India has initiated discussions with the United States regarding a proposed trade agreement that includes significant tariff concessions on key industrial goods. Specifically, Indian officials have introduced a plan to eliminate tariffs on steel, auto components, and pharmaceuticals, contingent upon reciprocal commitments from the U.S. This proposal sets a quantitative limit on the volume of imports that would enjoy this zero-tariff status, thus allowing for regular duties to apply on imports exceeding that threshold.
These negotiations took place during a visit to Washington by Indian trade officials late last month, as both nations aim to accelerate talks in anticipation of finalising a bilateral trade deal by autumn 2023. Sources familiar with the discussions, who requested anonymity due to the confidential nature of the talks, highlighted that the two countries are focusing on select sectors in order to reach a preliminary agreement prior to the conclusion of the 90-day hiatus on tariffs initiated by former U.S. President Donald Trump.
The ongoing dialogue reflects a broader initiative to enhance economic ties between India and the U.S., two of the world’s largest economies. By addressing tariffs, particularly in strategically important sectors, both nations hope to foster greater trade flows and bolster economic cooperation.
The Japan Times is reporting that these negotiations are timed to take advantage of the current political landscape, with both governments recognising the potential benefits of a mutually advantageous trade agreement.
Source: Noah Wire Services
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