India eyes new markets with US

INDIA is aggressively seeking trade deals to open markets for exporters and soften the blow of steep US tariffs, as efforts to secure an agreement with Washington remain elusive.

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US President Donald Trump (R) shakes hands with Indian Prime Minister Narendra Modi in the Oval Office of the White House in Washington, DC last year. | AFP

(AFP)

Relations between Washington and New Delhi plummeted in August after President Donald Trump raised tariffs to 50%, a blow that threatens job losses and hurts India’s ambition of becoming a manufacturing and export powerhouse.

That pressure, experts say, has pushed New Delhi into a rapid diversification drive beyond its biggest market.

India signed or operationalised four trade agreements last year, including a major pact with Britain - the fastest pace of dealmaking it has seen in years - and is now eyeing fresh deals.

Negotiations are under way with the EU, the Eurasian Economic Union, Mexico, Chile and the South American Mercosur trade bloc, either for new deals or to expand existing agreements.