The report highlights the country’s work to avoid trade disputes with the United States. In the recent union budget, the government has reduced import duties on a variety of products, including electronics, textiles and high-end motorcycles.
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Furthermore, India is taking steps to strengthen diplomatic relations with the US, including agreeing to repatriate more than 100 illegal Indian immigrants. Currently, India is further considering tariff reductions on luxury vehicles, solar cells and chemicals as part of its strategy to maintain smooth trade relations.
“India is considering preparing to reduce tariffs on more than 30 items and increase US defense and energy purchases,” Nomura said.
The report also states that if India does not cut higher tariffs on American goods, the US could respond with similar obligations regarding India’s exports. For example, if India collects 25% tariffs on US cars, Washington says it could impose equal tariffs on India. vehicle. US President Donald Trump, who has criticized India’s trade policy in the past, has pushed for “mutual tariffs” to ensure fair treatment of US exports. The report points out that India has relatively higher tariff rates compared to other countries. US retaliation measures. The US is India’s largest export destination, accounting for around 18% of total exports, reaching around 2.2% of India’s GDP in 2024.
The trade surplus with India has been increasing in recent years, reaching nearly USD 38 billion in 2024. Major Indian exports to the US include industrial machinery, gems and gems, pharmaceuticals, iron, steel, textiles, vehicles and chemicals.
Trump previously called India the “custom king,” underscoring the need for India to purchase more American-made security equipment. In a recent discussion with Prime Minister Narendra Modi, he is calling for a “fair bilateral trade relationship.”
To prevent the imposition of higher mutual tariffs, the report said India is seeking ways to reach an agreement with the US. In the medium term, the country aims to strengthen its economic ties with Washington and attract American supply chains to align its operations in India.
Prime Minister Narendra Modi met with President Trump in Washington on Friday and is set to discuss tariffs and trade.
