India-US trade deal: As part of the ongoing trade deal negotiations with the US, India appears to be open to imports of some genetically modified agriculture products that are used for animal feed. India’s Commerce Ministry officials are currently in Washington DC for the fifth round of talks for the India-US trade deal.According to an ET report, while showing India willingness to accept certain GM products, India is not interested in lifting restrictions on GM corn and soyabean imports.US President Donald Trump has indicated that India’s trade arrangement would follow a similar pattern to Indonesia’s agreement, which includes a 19% tariff, implying that India could face tariff rates more than the standard 10% rate. “There will be an interim deal first, be it first tranche or second tranche, before a BTA,” a senior official was quoted as saying. “We will close multiple deals as and when they finalise. We will be doing our job. Rest we will leave to others,” the official added.Also Read | India-US trade deal: Donald Trump says ‘another deal coming up, maybe with India’
India-US Trade Deal: What Both Countries Want
India seeks enhanced market opportunities in sectors employing substantial workforce, particularly textiles and electronics, whilst the United States requests significant tariff reductions across various sectors, including automobiles, and entry for its dairy and agricultural products.“We aim to package a deal before the Quad summit,” said the official cited above.India shall host this year’s summit of the four-nation Quad alliance, which includes the United States, Australia and Japan. Trump is expected to attend the gathering.The United States has declared tariffs on multiple countries effective August 1. According to the trade agreement with Vietnam, the United States has implemented a 40% duty on transshipped merchandise.Also Read | Donald Trump trade war impact: India in wait-and-watch mode on impact of tariff differentials; ‘difficult to plan…’The United States has engaged with Indonesia, seeking agreements for substantial purchases, including $15 billion in energy resources, $4.5 billion in agricultural goods, and an order for 50 Boeing aircraft. During BTA negotiations, stipulations might arise regarding India’s continued procurement of Russian oil.On July 14, Trump advocated for complete tariffs on nations purchasing Russian oil, with NATO subsequently cautioning India, China, and Brazil about potential severe secondary sanctions, including full tariffs, should they maintain Russian trade relations without encouraging Moscow towards peace discussions.The United States has introduced a 10% tariff proposal affecting all BRICS exports, alongside a 50% duty on Brazilian goods, partially due to their stance on platform X content removal.“India, which also makes takedown requests, could be targeted next. More such tariffs could follow,” said a New Delhi-based trade expert, who noted that even a trade agreement wouldn’t ensure protection, given Washington’s unpredictable policy stance.Also Read | India-US trade deal: Will Donald Trump go for less than 20% tariff rate for India? Top 10 developments to track
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