India-West News Desk
NEW DELHI – Indian Prime Minister Narendra Modi is preparing additional concessions ahead of a meeting this week with U.S. President Donald Trump, aiming to boost American exports and prevent a potential trade conflict, government officials told Reuters.
Modi will visit the U.S. for two days starting February 12. Trump has previously criticized India’s trade policies and called for increased purchases of American security equipment to improve trade balance.
India is considering tariff reductions in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals, said Reuters. The officials said the concessions align with New Delhi’s domestic production strategies.
Concessions under discussion include reduced tariffs on items that India predominantly imports from the U.S. or has a growing demand for, such as dish antennas and wood pulp. Two-way trade between the nations exceeded $118 billion in fiscal year 2023-24, with India running a surplus of $32 billion.
Bilateral trade between the U.S. and India has expanded over the past decade, with Washington increasingly viewing New Delhi as a strategic counterbalance to China. The visit aims to prevent a trade standoff similar to the ongoing U.S.-China trade dispute, Reuters noted.
India’s budget recently lowered the average import tariff rate to 11% from 13% on various items and reduced taxes on luxury vehicles.
Additionally, India is reviewing surcharges on more than 30 products, including high-end cars and solar cells.
News of Trump’s planned tariffs on steel and aluminum affected Indian markets, with metal stocks leading losses. Benchmark indexes fell 0.8%, while the metals index dropped 3%. Nearly 20% of India’s engineering goods exports, including steel and aluminum valued at about $25 billion, could be affected if the proposed tariffs take effect, an industry body official said.
“We are in a wait-and-watch mode and hope the issue can be amicably resolved during Prime Minister Narendra Modi’s visit,” one official told Reuters, speaking anonymously due to the sensitivity of the matter.
