Seize the Opportunity: India, Use Trump’s Tariff Reprieve to Secure Lasting Trade Deals with US, EU, and UK

April 14, 2025 2 Min Read

India Seizes Opportunity in Pause of US Tariffs, Seeks Bilateral Trade Agreements with Major Economies

As the world breathes a collective sigh of relief following US President Donald Trump’s decision to pause the implementation of reciprocal tariffs, India is seeing this as a golden opportunity to push through bilateral trade agreements with major economies. External Affairs Minister S Jaishankar has signaled that Indian negotiators are "really charged up" and are working tirelessly to finalize trade deals with the US, European Union, and the United Kingdom. The pause has given India a 90-day window to seal a landmark trade pact with the US by this fall, and accelerate talks with the EU and UK.

The stakes are high, given the economic significance of these countries. The three countries/blocs account for an impressive 38.1% of India’s merchandise exports and 16.5% of its imports in 2023-24. India enjoys trade surpluses with each of these partners, giving it a stronger negotiating position compared to its trade relationships with countries like China, ASEAN, Korea, Japan, Hong Kong, Taiwan, or Australia. The potential gains from trade, especially if services are included, would be substantial, particularly in terms of improved market access for Indian IT professionals and skilled workers.

A successful trade deal with these major economies would not just be symbolic; it would send a clear message that India is a committed partner for international trade. The current focus should be on finalizing deals covering both goods and services, ideally within the 90-day window. Moreover, the trade talks should extend beyond lowering tariffs to ease non-tariff barriers (NTBs), such as the EU’s proposed carbon border tax or India’s strict quality control orders. Easing such barriers is crucial for fair trade between market-based economies and would open up opportunities for India’s businesses to grow and compete globally.

External Affairs Minister S Jaishankar’s assertion that Indian negotiators are energized to push for these agreements has set the tone for the next few months. The emphasis should be on decisive action to seize this opportunity, using the pause in tariffs as a springboard to strengthen India’s trade relationships with the US, EU, and UK. The success of these talks would not just boost India’s economy but also reinforce its place as a key player in the global trading landscape.

Keyword density:

India
US
European Union
UK
Bilateral trade agreement
Reciprocal tariffs
Non-tariff barriers
Trade talks
Global trade landscape

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Original Source: https://indianexpress.com/article/opinion/editorials/india-should-use-trumps-tariff-reprieve-to-finalise-deals-with-us-eu-uk-9942487/
Category : Editorials,Opinion
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Publish Date: 2025-04-14 07:17:00