How Lifting Tariffs Will Impact India

US Vice President J D Vance has just completed his 4-day visit to India.

- GURBIR SINGH

There was much bonhomie with that added touch since his wife, Usha, traces her ancestral origins to Andhra Pradesh. There was sightseeing too, at Jaipur and the Taj Mahal; and Prime Minister Modi entertained the family presenting peacock feathers to each of the 3 Vance children.

But beyond the public spotlight, the visit kicked off hard negotiations for a trade deal that India hopes will avert the US' onerous 26 percent across-the-board tariffs. These are on a 90-day pause now; but they will kick in from 8 July if there is no deal by then.

President Donald Trump has been highlighting that India must drop tariffs specifically on US agricultural products, automobiles and whiskey. While both Trump and Prime Minister Modi describe each other as 'friends', the former has often come down heavily on India's trade barriers with epithets such as 'tariff abuser' and 'tariff king'.

The current body language however indicates India is perhaps closer than others to a bilateral trade agreement. After Vance's visit, Trump told reporters in his Oval Office that India is on course to lower tariffs on American goods. On its part, India has been cautious not to displease Trump. In fact, it has bent backwards not to impose or even threaten retaliatory measures even after he declared 26 percent imposts on Indian goods.