Not surprisingly, India is stepping up its game to secure trade deals. The future possibility of punitive tariffs from the United States was a major catalyst behind this preemptive strategy. With U.S. President Donald Trump’s sweeping global trade tariffs set to take effect on July 9, India aims to mitigate the potential financial impact of a 26% levy on goods shipped to its largest export market.
Over the past few weeks, Indian officials have rolled out a new plan. Our blueprint for a fair and fast trade policy aims to complete trade agreements that save much of those approaching costs. This initiative could not have come at a more critical moment as we must actively protect vital pillars of the Indian economy. Industries such as steel and alcohol are especially hitting hard by shifting trade tides.
Just last month, India celebrated the announcement of an FTA with the United Kingdom. This monetary achievement is a huge leap ahead for India’s international trade strategy. New Delhi is making substantial moves to reach out to its top trading partners. No wonder this agreement is a crucial element of its strategy to improve its economic competitiveness on the world stage. As one of India’s key trading partners, the U.K. is an important market for Indian exports of goods and services.
As India attempts to seal the best deal possible on trade, it does not do so in isolation. Many of our international peers, and economic rivals, are facing these same worries about the effects of U.S. tariffs on their exports. This collective struggle underscores just how interdependent global trade has become. Countries such as India need to avoid it and need to act quickly and very decisively to do so.
To steer through these choppy trade waters, Indian officials have made some difficult decisions to move negotiations forward with the other countries involved. The continued emphasis now is on negotiating FTAs that will help create more efficient export pathways and lower the cost burdens that come with tariffs. India will seek to mitigate the most harmful economic effects. Yet, at the same time, it claims to seek to be a top competitor in the global marketplace.
And the deadline for Trump’s tariffs is coming right up. If those are indeed New Delhi’s strategic moves, they will be keenly observed by domestic stakeholders and international observers alike. These negotiations truly have the potential to redefine India’s economic landscape. In addition, they have the ability to change India’s status in the world trading order.