US-India Trade Talks Underway

The Indian government has initiated discussions with industry leaders regarding the proposed trade deal with the US, focusing on product tariffs and the rules of origin that will dictate duty concessions. Businesses are advised to prepare for potential reciprocal tariffs as negotiations progress.

Industry's Role in Shaping the Deal

During a pivotal meeting, the commerce department called for a comprehensive list of non-tariff barriers faced by Indian exporters, aiming to address these in upcoming talks with the United States. This marks the first official engagement with industry representatives, shedding light on the previously opaque negotiation process.

Rules of Origin: A Key Focus

The rules of origin, crucial for determining product eligibility for duty concessions, emerged as a central topic. Indian officials highlighted that these norms may diverge significantly from those in existing agreements, such as the USMCA and the US-Japan treaty, requiring Indian businesses to adapt their strategies accordingly.

Preparing for the Future

With the pause in tariffs set to end in early July, Indian industry is urged to align with US norms, emphasizing changes in product form, appearance, and character, a shift from the traditional focus on value addition and classification changes in Indian agreements.