India wants tariff advantage over competing economies before signing US trade deal, says minister

The final details of India’s trade deal with the United States will be announced once Washington is able to give New Delhi a tariff advantage over competing countries, Union Commerce and Industry Minister Piyush Goyal said on Thursday.

At an event in New Delhi, Goyal claimed that India had secured a good deal in “every sensitive sector”, such as agriculture, fisheries and micro, small and medium enterprises.

He added that the country’s goods exports had continued to grow in August and urged industry associations to set ambitious export targets.

Goyal also pointed to India’s 7.8% gross domestic product growth in the April-June quarter, saying it was “no mean achievement” against the backdrop of global uncertainty. He urged stakeholders not to be swayed by “naysayers”.

The Congress had questioned the GDP numbers on Tuesday, describing them as “statistical gymnastics” being used to hide “India’s bleak economic reality”.

Trade deal uncertainty

After an interim bilateral trade deal was agreed on February 2, US tariffs on Indian goods would have been reduced to 18% from a combined rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August over India’s purchase of Russian oil.

However, negotiations on the final deal were postponed after the US Supreme Court on February 20 struck down global tariffs imposed by President Donald Trump, ruling that he...

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