India expected to maintain firm position on sensitive sectors in key US trade talks

NEW DELHI : With the first round of in-person sectoral talks beginning on May 17, evolving dynamics between India and the United States are likely to shape the course of negotiations for the proposed trade agreement.

Sources say that India’s interest will be prioritised and talks will be measured as the country seeks to protect sensitive items in agriculture as well as sectors like dairy, despite President Donald Trump’s claim that New Delhi has offered to drop tariffs on all US goods.

India has so far offered zero-to-zero tariffs for industrial goods, while the rates on other items are still being negotiated, especially given the sensitivity of the farm and dairy sectors, one of the sources said.

In any trade deal, each side seeks to protect its sensitive sectors—it’s always a matter of bargaining. We’ll aim for a balanced outcome, but our sensitive sectors will be safeguarded,” a senior government official said.

Trump on May 15 said the Indian government has “offered us a deal where basically they are willing to literally charge us no tariff.”

His comments come at a time when there is a growing frustration in India over the US President’s announcement of a ceasefire between India and Pakistan on May 10, following an escalation of hostilities.

The US President claimed that he used trade as a lever to secure a truce, a development denied by Indian officials.

Only a few days later, India, on May 13, made a move to take the US to the WTO public, proposing to impose retaliatory duties in response to American tariffs on steel and aluminium.

This is different from India’s earlier stance of securing exemptions through the trade deal rather than proposing retaliatory tariffs, even as the US levied a 25 percent sectoral duty on steel and aluminium.