India-US Tariff: Trump tariff will no longer be imposed on India, has the government made an action plan?

India-US Tariff: The trade equations between India and the US have taken a significant turn in the last few weeks. The US' decision to suspend the 26 percent reciprocal tariff imposed on India for 90 days has brought relief to Indian industries. After this announcement, not only was there a positive wave in the stock market, but the rupee also strengthened. But now the real question is what will happen after 90 days?

What is India's strategy?

According to experts, the Indian government has taken these 90 days not just as a waiting period but as a strategic preparation. According to a senior official, the process of finalizing an interim bilateral trade agreement (Bilateral Trade Agreement - BTA) between India and the US has been expedited. The government's goal is to finalize this agreement before July so that the US does not have to impose tariffs again.

The objective of this agreement is to strengthen trade relations between the two countries and minimize barriers like tariffs. This agreement can open the doors of new possibilities for many sectors of India – such as agriculture, textiles, auto parts, and IT.

India at the forefront of dialogue with America

India has played a leading role in bilateral trade talks compared to other countries. Both countries are aiming to complete the first phase of the agreement by September-October this year. Through this agreement, an ambitious target has been set to increase bilateral trade from the current $ 191 billion to $ 500 billion by 2030.

In this process, continuous dialogue has been maintained through video conferencing and high-level visits. Experts believe that this readiness of India is also a positive sign for America.

Will stick to the principle of “India First”

Commerce and Industry Minister Piyush Goyal has taken a clear stand on this issue and said that India will not compromise the interests of the country and the people in any agreement. He said categorically that India does not enter into any agreement 'at gunpoint' and this process will not be done in a hurry.

Goyal said that all trade negotiations of India are being done with the perspective of "India First" and their aim is to realize the vision of developed India by 2047.

90 days, a big opportunity

This 90-day gap of deferring tariffs is a strategic window for India. If India is able to reach an agreement with the US in this period that is beneficial for both the parties, then it will not just be a relief from tariffs but can also be the beginning of a new trade era.

India's stand so far is clear - national interest is paramount. But at the same time it is also visible that India is emerging as a mature and confident economic power on the global stage, which can not only face challenges but can also turn them into opportunities.