India Targets Partial Trade Deal with United States Within 90-Day Window

India is actively working towards finalizing a partial bilateral trade agreement (BTA) with the United States within the 90-day reprieve on tariff hikes announced by US President Donald Trump. This strategic initiative is part of New Delhi’s broader trade diplomacy framework aimed at balancing domestic industrial interests with expanding global market access. According to sources familiar with the ongoing discussions, the proposed trade pact will primarily focus on essential and non-sensitive goods, offering a pragmatic start to what could eventually evolve into a more comprehensive economic arrangement between the two nations.

The government is reportedly weighing the possibility of duty reductions on several American imports, particularly in sectors where domestic sensitivities are minimal. This move could serve as a confidence-building measure for Washington, which in turn is expected to reciprocate by granting permanent tariff relief on certain Indian exports. The negotiations, which involve coordinated efforts from the Prime Minister’s Office, Ministry of Commerce and Industry, Ministry of External Affairs, and the Ministry of Finance, are said to be progressing steadily, with multiple high-level consultations already held between New Delhi and Washington.

Highlights:

• India working to finalize partial trade pact with US within 90 days

• Deal to include essential and non-sensitive product categories

• India may cut tariffs on select US imports

• US likely to offer permanent tariff relief in return

• PMO and multiple ministries involved in coordinated negotiations

Free Trade Agreements with European Union and United Kingdom Gain Urgency

As part of its evolving trade strategy, India is pushing aggressively to conclude free trade agreements (FTAs) with the European Union (EU) and the United Kingdom (UK) in parallel with its US negotiations. The talks with both blocs have advanced to critical stages, with significant progress achieved on tariff schedules, regulatory standards, and investment protections. This approach aligns with India’s long-term objective of diversifying its export destinations, especially in light of increasing global economic fragmentation and tariff-related uncertainties with traditional trading partners.

New Delhi’s acceleration of talks with Brussels and London reflects a conscious shift in trade risk management. By securing FTAs with major Western economies, India aims to deepen market access for key sectors including pharmaceuticals, textiles, automobiles, and services. This push for early conclusion is also influenced by the upcoming election cycles in both regions, which could potentially delay or complicate ratification processes. Indian negotiators are also working to ensure that the final agreements include adequate safeguard mechanisms for sensitive sectors to avoid domestic disruption.

Highlights:

• India advancing FTA negotiations with EU and UK

• Talks have reached advanced phases covering multiple sectors

• Goal is to diversify trade risks and gain wider market access

• Pharmaceuticals, services, and automobiles seen as priority sectors

• FTAs expected to bolster India’s export competitiveness in Western markets

Crackdown on Chinese Import Dumping Strengthened Through Quality Controls

The third and equally critical leg of India’s 90-day trade strategy involves protecting domestic industries from predatory pricing practices, particularly from China. In light of persistent concerns over the dumping of substandard and underpriced goods, India is ramping up enforcement of the Quality Control Order (QCO). The QCO mandates that imported products must adhere to Indian quality and safety standards, thus acting as a non-tariff barrier to entry for questionable imports.

To further enhance responsiveness, an inter-ministerial task force has been constituted to examine dumping trends, coordinate intelligence sharing across departments, and implement swift countermeasures. This mechanism is aimed at creating a real-time response system that can preempt surges in cheap imports and prevent injury to domestic manufacturing. The government is also exploring anti-dumping duties and safeguard duties as supplementary tools to protect vulnerable sectors such as electronics, steel, and consumer goods from unfair trade practices. The aggressive posture towards Chinese imports is not just economic but also strategic, reflecting larger geopolitical recalibrations in the Indo-Pacific region.

Highlights:

• India strengthens protection against dumping by China

• Enforcement of Quality Control Order (QCO) being intensified

• Inter-ministerial group formed to monitor and respond quickly

• Electronics, steel, and consumer goods among key vulnerable sectors

• Strategy reflects both economic and geopolitical considerations

India’s Strategic Trade Realignment Enters Execution Phase

With global trade dynamics undergoing rapid and complex transformations, India’s three-pronged approach—focused on the US, EU/UK, and trade protection—is being seen as a timely recalibration. While the partial US deal is expected to be finalized within weeks, the simultaneous push to conclude European FTAs and shield local industries signals that India is seeking a more assertive role in global commerce. The convergence of these trade priorities is being carefully choreographed to deliver outcomes that are mutually reinforcing—each front aimed at either enhancing market access or shielding domestic capacity.

Trade experts view this evolving architecture as part of India’s ambition to establish itself as a reliable trade partner and resilient manufacturing hub, especially amid global supply chain realignments. The increasing adoption of non-tariff tools like QCOs also highlights India’s strategic use of standards as both a defensive and competitive tool. While the short-term challenge remains the successful navigation of three complex and interlinked fronts within a narrow time frame, the long-term opportunity lies in integrating Indian producers more deeply with global value chains while retaining enough policy flexibility to insulate key sectors.

Highlights:

• India’s trade approach now includes simultaneous execution on three fronts

• Goal is to expand access while protecting domestic competitiveness

• Use of QCOs and bilateral deals shows tactical use of non-tariff tools

• India’s positioning as a resilient supply chain hub gaining credibility

• Strategy reflects mix of offensive and defensive trade measures

Domestic Industry to See Gains and Challenges as Trade Policy Evolves

While these trade initiatives are externally oriented, their internal ramifications are likely to be significant. The reduction of import duties and trade liberalization under FTAs and BTAs may pose challenges for some domestic industries, especially those not yet fully cost-competitive. To manage this, the government is expected to roll out a series of support schemes under the Production Linked Incentive (PLI) framework, designed to help local players scale up, modernize, and withstand foreign competition.

Simultaneously, certain industries such as IT services, pharmaceuticals, chemicals, and textile exporters are expected to benefit immediately from improved access and reduced tariff barriers in the US, UK, and EU. For policymakers, the delicate balance will lie in ensuring that liberalization does not lead to displacement or job losses, especially in labor-intensive sectors. As such, complementary domestic policies—including skill development, regulatory easing, and credit access—are likely to be announced in tandem with external agreements.

Highlights:

• Trade liberalization may challenge some uncompetitive domestic sectors

• PLI schemes expected to cushion the impact and enable scaling

• Export-oriented sectors like IT and pharma stand to gain from new FTAs

• Government may pair external trade deals with supportive domestic reforms

• Balancing liberalization with domestic employment priorities remains key