India-US Trade Deal: A Waiting Game for Businesses

As discussions for an interim trade deal between India and the US continue, Indian corporates are left in a state of uncertainty, particularly regarding their plans for the American market. The lack of clarity on potential tariff rates under the Donald Trump administration has put many business strategies on hold.

Impact on Key Industries

The ongoing negotiations are affecting various sectors including electronics, textiles, apparel, seafood, and gems and jewellery. Companies like Bhagwati Products, Karbonn Group, and Dixon Technologies report that while existing exports to the US continue, new orders are being delayed pending the outcome of the trade talks.

Global Companies Exercise Caution

Industry leaders highlight a cautious approach among global companies, with many awaiting the results of the trade deal discussions. This hesitation is particularly evident in the electronics and jewellery sectors, where future orders and manufacturing plans are being reconsidered based on potential tariff implications.

Looking Ahead

Despite the current uncertainties, there is cautious optimism within the textile industry about securing a favorable deal. However, the seafood export sector is already experiencing a slowdown, with international buyers hesitant to place new orders amidst the tariff discussions.

Trump Hints at Possible Agreement

US President Donald Trump has recently suggested that an agreement with India might be forthcoming. With bilateral trade between the two nations reaching $131.84 billion in FY25, the outcome of these negotiations holds significant implications for both economies.