India-US Trade Deal Buzz: Focus on 408 Products, Big Boost Expected for Indian Exports

National News: India and the United States are intensifying discussions around a potential mini trade deal. If successful, this could unlock significant opportunities for Indian exporters in the vast American market. The United States is already one of India’s most vital export destinations, and now the Indian government is planning concrete steps to further increase outbound trade.

FIEO Identifies 408 High-Potential Export Products

The Federation of Indian Export Organizations (FIEO) has identified 408 products with strong export potential to the US. These are items that currently have high demand in the American market and where India can ramp up supply. Of these, over 300 products have been marked as especially viable for increased exports—if the US agrees to reduce tariffs or taxes on them.

The list includes a wide variety of goods such as shrimp, pharmaceuticals, smartphones, diamonds, carpets, toilet linen, rice, and honey. FIEO has urged the government to engage with the US authorities to negotiate lower import duties on these items to make Indian products more competitive.

India’s Competitive Edge

India is already a leading supplier to the US in several categories:

• Shrimp: Over 40% of shrimp imported by the US comes from India.
• Honey: Though India’s share in global honey exports is modest, it contributes to around 25% of the honey shipped to the US.
• India is also strong in textiles, leather goods, footwear, chemicals, and engineering products.

However, tariff barriers remain a major challenge. For example, Indian shrimp and carpets are subject to import duties as high as 26%, while competitors from other countries often face lower tariffs. This puts Indian exporters at a disadvantage in pricing and market access.

Tax Relief Could Boost Jobs and Rural Economy

FIEO believes that if the government successfully secures tariff reductions—especially on labor-intensive products—it will not only drive exports but also create more jobs and strengthen the rural economy.

Talks Led by Rajesh Agarwal

A team of Indian trade negotiators, headed by Rajesh Agarwal, Special Secretary in the Commerce Department, is actively engaging with American counterparts. These talks come at a critical time, as former President Donald Trump is expected to reimpose new tariffs from August 1. India is aiming to strike a deal before any such measures take effect.

Roadblocks Remain

Despite the progress, the road to an agreement is not entirely smooth. India has shown reluctance to offer concessions on agricultural and dairy products, which remain a sticking point. Moreover, the Trump administration is reportedly increasing pressure by signaling that countries aligned with BRICS or those purchasing oil from Russia could face additional import duties.

Indian officials also point out that the US has not yet clearly outlined its demands, adding to the uncertainty surrounding the deal.

A Major Opportunity, But Strategy is Key

A successful mini trade deal could be a game-changer for Indian exports, providing a significant boost across hundreds of products. However, experts caution that any agreement must be approached strategically, given the shifting nature of US policies.

At this juncture, India's priority must be to protect the interests of its exporters, maintain competitiveness in global markets, and enter negotiations with clarity, firmness, and foresight.