Latest news with #India-USBilateralTradeAgreement
Mint
an hour ago
- Business
- Mint
Textile, pharma to jewellery — Top sectors that may feel the pinch first from Trump's 25% tariff on India
Trump tariffs on India: US President Donald Trump on Wednesday declared a 25 per cent tariff on Indian goods, effective August 1, citing India's "obnoxious" trade barriers and close ties with Russia for defence and energy. The move, though not entirely unexpected, has triggered unease among Indian policymakers, exporters, and market participants, given the ambiguity around additional penalties Trump promised for India's Russian transactions. In a press statement, Trump referred to India as a 'friend' but argued that it imposes some of the highest tariffs on US goods and continues to enforce non-tariff barriers that are "unreasonable." He added that India's energy and defence cooperation with Russia, especially amidst the ongoing Ukraine war, 'empowers Moscow' and must be penalised. However, the details of the penalty for these transactions were not disclosed. In its first response to the announcement, the Indian government stated that it had 'taken note' of the new duty and is 'studying its implications.' It reiterated its commitment to a 'fair, balanced, and mutually beneficial' trade agreement with the US, signalling hope that diplomacy may temper the impact. Industry experts believe the immediate impact will be most visible in export-heavy sectors. Colin Shah, MD at Kama Jewellery, said the decision comes as a 'big blow' to India's gem and jewellery industry, one of the country's largest export contributors. 'The US is a critical export market. A 25 per cent tariff is bound to reduce the competitiveness of Indian goods, especially gems and jewellery, which are already under pressure due to prolonged geopolitical tensions involving Russia, Ukraine, and the Middle East,' Shah noted. He further added that Trump's return to political prominence and his unpredictable stance on trade have reignited uncertainty in Indian markets. 'We expect trade with the US to remain muted in the near term. However, all eyes are now on the sixth round of India-US Bilateral Trade Agreement talks, scheduled for late August, which may provide clarity,' Shah said. Meanwhile, Nuvama has also cautioned that India's export-driven sectors may face turbulence. In its latest commentary, the brokerage estimated that India's goods exports to the US — valued at approximately $87 billion — could be significantly impacted. These exports account for nearly 20 per cent of India's total goods exports and around 2.5 per cent of GDP, underlining the weight of the US as a key trading partner. While the direct blow to India's GDP may be limited due to the modest overall share of US exports in the country's economic output, the implications across sectors such as textiles, pharmaceuticals, electronics, agri-products, and machinery are likely to be substantial, Nuvama said. Nitin Bhatt, Technology Sector Leader, EY India, said, 'While the Indian IT services sector isn't directly hit by the newly announced 25% US tariffs, the ripple effects could be substantial. Rising input costs may prompt US companies to scale back discretionary tech spending. Simultaneously, growing unease around workforce mobility and evolving digital taxation frameworks could redefine how cross-border services are priced and delivered.' Nuvama further noted that these developments may heighten investor caution. The elevated tariffs could lead to increased risk aversion among foreign institutional investors, especially at a time when India's domestic consumption remains subdued. Sectors such as pharma, auto ancillaries, industrials, and tiles — which are heavily reliant on US demand — could witness notable volatility. Small- and mid-cap segments, along with high-beta sectors like real estate and NBFCs, might see more intense pressure due to the risk of capital outflows. On the contrary, a depreciating rupee may benefit IT services firms, which tend to perform well in weak currency environments. Given that IT valuations are currently subdued, Nuvama expects this space to potentially outperform in the near term. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
10 hours ago
- Business
- Economic Times
Five rounds of India-US trade talks held so far: Centre
New Delhi: India-US Bilateral Trade Agreement (BTA) negotiations were launched in March 2025, with five rounds held so far -the most recent from July 14-18 in Washington, Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha in a written reply on Tuesday. The two countries aim to negotiate the first tranche of a mutually beneficial, multi-sector BTA by fall 2025. The US has imposed a 25% tariff on automobile imports and certain auto parts from all countries, including India. These tariffs took effect on April 3, 2025, for automobiles, and on May 3, 2025, for auto parts. "India has taken requisite steps to reserve all its rights consistent with the provisions of WTO Agreements," Prasada added. In a separate reply, the Lok Sabha was informed that the US has not yet imposed any additional tariffs specifically on BRICS countries. "While the US had announced a reciprocal tariff of 26% on certain Indian exports, including seafood, this has not been implemented. Currently, the US has imposed an additional 10% duty on seafood imports, regardless of country of origin - including those from India and Ecuador," Prasada said. He added that the government remains committed to supporting India's seafood sector through sustained diplomatic engagement and policy support.
Time of India
10 hours ago
- Business
- Time of India
Five rounds of India-US trade talks held so far: Centre
New Delhi: India-US Bilateral Trade Agreement (BTA) negotiations were launched in March 2025, with five rounds held so far -the most recent from July 14-18 in Washington, Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha in a written reply on Tuesday. The two countries aim to negotiate the first tranche of a mutually beneficial, multi-sector BTA by fall 2025. The US has imposed a 25% tariff on automobile imports and certain auto parts from all countries, including India. These tariffs took effect on April 3, 2025, for automobiles, and on May 3, 2025, for auto parts. "India has taken requisite steps to reserve all its rights consistent with the provisions of WTO Agreements ," Prasada added. In a separate reply, the Lok Sabha was informed that the US has not yet imposed any additional tariffs specifically on BRICS countries. "While the US had announced a reciprocal tariff of 26% on certain Indian exports, including seafood, this has not been implemented. Currently, the US has imposed an additional 10% duty on seafood imports, regardless of country of origin - including those from India and Ecuador," Prasada said. He added that the government remains committed to supporting India's seafood sector through sustained diplomatic engagement and policy support. Explore courses from Top Institutes in Please select course: Select a Course Category Design Thinking MCA Leadership Public Policy Healthcare others Others CXO Finance Management Data Analytics Degree Product Management Artificial Intelligence PGDM MBA Operations Management Digital Marketing Technology Data Science Cybersecurity Data Science Project Management healthcare Skills you'll gain: Duration: 25 Weeks IIM Kozhikode CERT-IIMK PCP DTIM Async India Starts on undefined Get Details Skills you'll gain: Duration: 22 Weeks IIM Indore CERT-IIMI DTAI Async India Starts on undefined Get Details
Time of India
21 hours ago
- Business
- Time of India
Tariff clock ticks away: Indian exporters dread what Trump might bring two days from now
With Trump 's tariff deadline almost at hand, Indian exporters are facing a greatly uncertain landscape. Orders are being held back as businesses await clarity on the US President's next steps, the Times of India reported on July 30. According to Sudhir Sekhri, chairman of the Apparel Export Promotion Council, the situation remains quite unpredictable. American store shelves are running low, but many buyers are delaying production until the tariff situation becomes clearer, Sekhri told ToI's Sidhartha. Explore courses from Top Institutes in Please select course: Select a Course Category others Operations Management PGDM Product Management Leadership Cybersecurity Data Science Others Data Analytics CXO Design Thinking MBA Data Science Digital Marketing Healthcare Finance Artificial Intelligence Degree Technology Project Management Public Policy Management healthcare MCA Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details As the deadline for tariffs draws near, the focus remains on how the unfolding developments will shape the future of Indian exports. With discussions set to resume on August 25, there remains a glimmer of hope for a last-minute resolution. However, for now, uncertainty reigns, leaving exporters in a precarious position as they navigate the complexities of international trade. Kirit Bhansali, the chairman of the Gem & Jewellery Export Promotion Council, shared a similar sentiment. While he remains hopeful for a favourable outcome for India, he acknowledged that the current tariff uncertainty has already affected order volumes. While some shipments are being processed at a 10% duty, many buyers are holding off, having stocked up during a shipping rush in April. Live Events These concerns extend beyond the apparel and jewellery sectors. Satish Wagh, chairman of Chemexcil, noted that the marginal growth of just 0.1% in exports to the US during the April to June 2025 period indicates stagnation, likely due to the looming tariff announcements. There has been a notable decline in shipments of agrochemicals and dye intermediates, suggesting that buyers may be reconsidering their inventory needs or renegotiating contracts in light of potential price increases. Despite the challenges, trade officials remain cautiously optimistic. Ajai Sahay, director general of Fieo, pointed out that while the delay in the India-US Bilateral Trade Agreement (BTA) is concerning, it is unlikely to hinder long-term trade prospects. Both exporters and importers recognise that a deal will eventually be reached and are willing to absorb short-term costs in anticipation of better conditions, Sahay said. The garment sector is particularly strained. China has ramped up its exports to Europe, capitalising on the tariffs imposed by the US, which has made it harder for Indian exporters to compete. Sekhri informed that during this lean season from May to August, Indian exporters typically operate at around 70% capacity. However, the current situation has reduced this to about 50%, further complicating matters.
Time of India
19-07-2025
- Business
- Time of India
India-US trade deal: Fifth round over, India is not budging
India has once again signaled its steadfast approach to international trade negotiations , as the fifth round of talks for the proposed India-US Bilateral Trade Agreement (BTA) concluded in Washington this week. Led by Rajesh Agrawal , India's chief negotiator and Special Secretary in the Department of Commerce, the Indian delegation engaged in four days of deliberations with their American counterparts from July 14 to 17. The return of the negotiating team marks a critical juncture in the ongoing dialogue, which seems to remain mired in unresolved issues. Union Commerce and Industry Minister Piyush Goyal 's firm remarks on Saturday, following the conclusion of this latest round, make it unequivocally clear that India will not be rushed or coerced into finalizing a trade deal that does not align with its national interests. Speaking at a function hosted by ASSOCHAM (Associated Chambers of Commerce and Industry of India), Goyal asserted, 'If India gets a good trade deal, we will go ahead with it. If not, we won't. India always keeps the country's interest first.' Explore courses from Top Institutes in Select a Course Category MBA Project Management Data Analytics Data Science PGDM Digital Marketing Leadership healthcare Others others MCA Operations Management Cybersecurity Public Policy Degree Finance Technology Design Thinking Healthcare Product Management Artificial Intelligence Data Science CXO Management Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Strategic patience over speed This declaration reiterates a central theme that has characterized India's approach under the current administration: strategic patience over external pressure. Earlier this month, on July 5, Goyal had emphasized that India negotiates from a "position of strength," not according to imposed deadlines, a clear response to the July 9 timeline previously set by US President Donald Trump, which was later pushed to August 1. Goyal's consistent messaging suggests India is uninterested in symbolic or hurried agreements driven by political timelines in Washington. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ringing in The Ears? Do This Immediately! Live Happier Click Here Undo This approach is particularly significant in the current global trade environment , where developed economies, including the US, are looking to restructure key trade relationships in the wake of changing geopolitical dynamics and economic realignments post-COVID and amid ongoing global supply chain shifts. India's posture underscores its growing economic self-assurance. While the US seeks deeper market access in areas such as agriculture, digital trade, intellectual property rights and medical devices, India is focused on securing greater access for its IT services, textiles and pharmaceuticals, while protecting sensitive sectors like agriculture and dairy from potential disruption. Live Events In line with this, India's trade negotiators have reportedly resisted US attempts to extract concessions in sectors where India remains cautious, particularly on agriculture and dairy. By refusing to compromise prematurely, India appears to be echoing its broader trade philosophy which is balancing globalization with the protection of domestic industry and livelihoods. Goyal's recent remarks further reinforce this narrative, portraying a government that remains keen to avoid repeating past mistakes of asymmetrical agreements. 'No negotiation through media' Adding to his resolute tone, Goyal also took a swipe at attempts to influence public opinion during sensitive negotiations. 'I've already mentioned that we don't negotiate through media, we negotiate in the negotiating room. Talks are ongoing, and once the team is back, we will get feedback on the response and the progress,' he told reporters, highlighting New Delhi's disciplined and professional handling of the talks. This was likely in response to leaked or unofficial reports attempting to project the US as driving progress while India remains hesitant. This statement can be interpreted as a subtle critique of Washington's pressure tactics, including setting public deadlines and possibly shaping narratives through the media. India's choice to avoid reactive diplomacy and instead stick to official channels is consistent with its desire to maintain autonomy and dignity in international dealings. What lies ahead While the fifth round of talks has concluded, both sides seem to have left the door open. India is expected to analyze the outcomes internally and recalibrate its strategy accordingly. Yet, what is increasingly clear is that India is not desperate for a deal. As Minister Goyal's statements suggest, the current government is not interested in optics but in substance, a fair and mutually beneficial agreement. In a world increasingly shaped by economic nationalism and realpolitik, India's measured and self-assured stance may set a template for other emerging economies negotiating with larger powers. By refusing to blink in the face of deadlines and media narratives, India is not just negotiating a trade deal, but reaffirming its position as a sovereign and assertive player in the global economic order. India's response after the fifth round of the India-US BTA talks reflects a firm, principle-driven approach to trade negotiations. Minister Goyal's reiteration that 'India always keeps the country's interest first' is not just rhetoric but a policy stance backed by a clear track record. Whether or not a deal is signed by August 1, India's message is clear: deals will be made on its terms, not under pressure.
