India seeks agri concessions from US, offers lower auto tariffs
What's the story
India is reportedly negotiating with the US to lower tariffs on automobiles, in return for concessions on agricultural products.
These discussions, according to government sources cited by Moneycontrol, are part of a larger trade deal between the two nations.
The goal is to finalize this deal by August-September, as part of "Mission 500."
Trade expansion
'Mission 500' aims to double trade between both countries
The aim of "Mission 500" is to more than double the existing trade volume between India and the US to $500 billion by 2030.
The ambitious target was set during Prime Minister Narendra Modi's visit to the US in February.
The latest negotiations are a major step toward achieving the goal, with both nations working hard to finalize the details of their bilateral trade agreement.
Negotiation strategy
India and US are working on a balanced offer
"Each ministry is submitting a calibrated list of items for exclusion and proposing phased tariff reductions spread over five to seven years," reported Moneycontrol, citing a source familiar with the developments.
"This will ensure adequate protection for our sensitive sectors such as key agricultural goods while allowing market access for others," the source added.
"There will be no trade deal with the US if it is not a win-win," a government official told the publication.
Agricultural exports
Strategic leverage in agriculture negotiations
India's agricultural goods exports to the US stood at $6.04 billion in 2024.
These negotiations are viewed as an opportunity for India to gain strategic leverage in agriculture-related talks for a trade deal with the US.
The first draft of a mutually beneficial, multi-sector bilateral trade agreement is expected by this autumn.