India's Stance on US Tariffs

The US decision to impose 25% tariffs is expected to have minimal effect on India, according to sources. India has clearly stated that duty exemptions for agricultural, dairy, and genetically modified (GM) products in trade agreements are non-negotiable areas.

Trade Volume Between India and the US: In the fiscal year 2024-25, trade between the two nations reached $131.8 billion, with $86.5 billion in exports and $45.3 billion in imports.

Exemptions and Impacts

A significant portion of Indian exports, including pharmaceuticals and electronics, already fall under US exemption categories, thus avoiding the new tariffs. More than half of India's exports to the US are expected to remain unaffected.

Sticky Points in Trade Negotiations

India has consistently refrained from offering duty concessions in the dairy sector across all its trade agreements, citing religious sentiments. "There will be no compromise on these segments," officials emphasized.

Upcoming Trade Talks

Bilateral trade negotiations between India and the US, which began in March, have completed five rounds. The sixth round is scheduled for the end of August.

Trump's Announcement and India's Response

US President Donald Trump announced a 25% tariff rate for India, with an additional penalty for India’s purchase of Russian oil and arms. In response, Commerce Minister Piyush Goyal stated that India would prioritize its national interest in any trade deal, highlighting the country's economic growth.