India seeks balance, US eyes market access in trade talks

Even if partial relief is granted, the baseline 10% tariff will stay; additional 10% duty also likely

- Dhirendra Kumar

As India and the US prepare to seal a deal aimed at boosting bilateral trade, New Delhi is aiming for a balanced outcome, while Washington is focused on securing deeper market access for its goods.

Though India has drawn red lines under its sensitive sectors—agriculture, dairy, and genetically modified (GM) food—the US continues to push for significant concessions. It has signaled a potential 6% duty relief from the 16% reciprocal tariff hike announced on 2 April, which remains on hold until 9 July.

However, three people familiar with the matter said that even if partial relief is granted, the baseline 10% tariff will continue, and an additional 10% duty—carved out from the original 16%—could still be imposed if India does not allow greater market access to these red-lined sectors, something Indian negotiators have firmly rejected.

Commerce Minister Piyush Goyal said on Friday that India is ready to sign the pact "only if it is in the interest of the country".