
New Delhi Ready To Give US Best-Ever Trade Terms In Push For Agreement
Photo: ANI via Reuters
India-West News Desk
NEW DELHI – India is willing to offer the United States an unusual trade provision that would ensure Washington always receives the most favorable terms India grants to any of its other trading partners, according to Indian government officials familiar with the matter.
The provision, known as a “forward most-favoured-nation” (MFN) clause, would automatically extend to the U.S. any better tariff arrangements India might reach with future partners. Indian officials told Reuters such a clause has rarely been included in past trade agreements.
The MFN clause has also been raised by the European Union in its ongoing free trade talks with India, though New Delhi has yet to commit. Including the provision in a U.S. deal would mark a significant shift in India’s trade policy.
The proposal is part of New Delhi’s broader push to finalize a trade agreement with the United States quickly. India has made several offers and early concessions to the U.S., signaling greater enthusiasm for a deal than other major trading partners such as China, Canada, or the European Union, according to a report from Reuters.
One official said India is ready to offer Washington better terms than those being considered for Britain or the EU, but would expect assurances in return—particularly that Indian exports could fill market gaps left by Chinese goods.
Over several rounds of discussions with U.S. officials, India has shown willingness to open sensitive sectors, including agriculture, reports Reuters. New Delhi has proposed lowering tariffs to between 0% and 5% on a range of American frozen meat and agricultural products, including fish, poultry, fruits, and juices. These items are currently subject to tariffs as high as 100%.
In return, India is seeking reduced U.S. tariffs on key labor-intensive exports such as textiles, leather goods, toys, furniture, automotive components, and gems and jewelry.
Indian negotiators have also requested long-term assurances for preferential access in areas like pharmaceuticals and industrial equipment, aiming to position India as a reliable supplier in American supply chains, Reuters said.