India has proposed zero tariffs on steel, auto components, and pharmaceuticals, up to a certain import threshold, as part of ongoing trade talks with the US, Bloomberg reported, citing people familiar with the matter.
Imports exceeding these thresholds would be subject to standard duties. The offer was made by Indian trade officials during a visit to Washington late last month, aiming to accelerate progress toward a bilateral trade deal expected by fall.
The two countries are focusing on select sectors to finalize an early agreement before the 90-day pause on former US President Donald Trump’s retaliatory tariffs ends.
With the US economy under strain, Trump has hinted that some trade deals could be finalized as early as this week, potentially easing pressure on trading partners. India, along with South Korea and Japan, is among the nations seeking interim deals with Washington.
Meanwhile, the US has urged India to address concerns over its Quality Control Orders, mandatory standards seen as non-tariff barriers, criticized for being opaque and discriminatory against foreign exporters.
Separately, India recently finalized a free trade agreement with the UK, concluding three years of on-and-off talks. The pact aims to boost trade between the world’s fifth- and sixth-largest economies.