(Forelines) – According to Government authorities, India’s Prime Minister Narendra Modi is preparing incremental tariff cuts in front of his discussion with U.S. President Donald Trump that could increase American exports to India and avoid a possible trade war, as per Reuters report.
PM Modi’s visit to the United States on Wednesday and Thursday comes as Donald Trump plans to declare reciprocal tariffs on many nations, a move designed to reshaping world trade collaborations in favour of the U.S.
Donald Trump has not defined which nations would be target but has previously urged India a “very big abuser” on trade and stressed that New Delhi should purchase more American-made security items to move toward a adequate bilateral trading collaboration.
New Delhi is evaluating tariff reductions in at least a dozen sectors, inclusive of electronic, medical and surgical items, alongside few chemicals, to increase United States exports. These reductions align with India’s internal production plans, stated by three government authorities, reported by Reuters.
The authorities, who spoke on condition of anonymity, stated that concessions are being considered for items that New Delhi primarily sources from the United States or has possible to purchase more of, such as dish antennas and wood pulp. PM Modi is expected to talk tariffs with Trump next week and New Delhi is open to talking a potential mini trade deal.
The initial tour hopes to escape a “trade war-like situation that is happening between United States and China,” a third authority stated. Trump enforced sweeping 10% tariffs on Chinese imports, prompting Beijing to address with duties on American energy.
The authorities did not wish to be identified as they are not authorised to speak to media. India’s ministry of trade, ministry of external affairs and the Prime Minister’s Office did not address to requests for comment e-mailed external official work days.
The discussions on tariff concessions follow a reduction in New Delhi’s average import tariff rates to 11% from 13% on several items in the nations’s annual budget, and a cut in taxes on high-end bikes and luxury cars.
India is further reviewing surcharges levied on over 30 items, like luxury cars and solar cells.
The upcoming discussion between India’s PM Modi and U.S. President Trump will focus on trade, defense cooperation and technology, but has been overshadowed by the current deportation of Indians from the United States, as per Reuters report.
According to Reuters, one of the three officials stated the discussion will help offer political direction to relations between the two nations and detailed talks on tariffs will follow the visit.
Despite Donald Trump’s criticism of India’s trade practices, the U.S. president has urged Modi “fantastic”.
The U.S. is New Delhi’s largest trading partner and two-way trade surpassed $118 billion in 2023/24, with New Delhi posting a surplus of $32 billion, as per Reuters report.
Trade relations between the two countries have expanded steadily over the last decade, with Washington continuously watching India as a counterbalance to China’s growing regional influence.