India, US Lay Foundation for Give-and-Take in Trade

Negotiations focus on early harvest deal, mutual tariff cuts, non-tariff barriers

- Dhirendra Kumar

India and the US discussed aligning tariffs on a mutual basis, an early harvest deal, market access and non-tariff barriers at their New Delhi talks, two people aware of the matter said. However, the two sides did not take up reciprocal tariffs vowed by Donald Trump from April 2.

India emphasized that the weighted tariff it levies has come down from 17% in 2023 to 10.66%, following changes in duty structures announced in the Union Budget for FY26, setting the stage for further negotiations in the coming rounds. The average weighted tariff is the actual tax that imported goods face on average, but it gives more importance to products that are imported in large quantities.

"This will form the basis of the talks, upon which the leadership and policymakers will further narrow down issues and decide on the give-and-take in the negotiations," one of the two people mentioned above said. Contentious issues such as giving a level playing field for US firms and regulatory compliance were not discussed in detail due to the limited time available, the person added.