India has proposed zero tariffs on imports of steel, auto components, and pharmaceuticals from the US, up to a specified limit, as part of ongoing trade talks.
Once the set import threshold is crossed, regular tariffs would apply to these industrial goods.
The proposal was made by Indian trade officials during their recent visit to Washington, aiming to fast-track a bilateral trade deal expected by this fall.
Both nations are targeting a limited trade agreement focused on key sectors, as part of efforts to conclude negotiations before the 90-day pause on US tariffs under President Trump’s administration ends.
President Trump indicated that some trade agreements might be finalized soon, possibly within the week, amid pressure from a contracting US economy.
Countries like India, Japan, and South Korea are actively pursuing interim deals with the US to avoid increased import duties.
The US has raised concerns about India’s Quality Control Orders (QCOs), seeing them as non-tariff barriers that hinder its exports.
QCOs are mandatory standards all manufacturers must meet to sell goods in India, and the US believes these regulations are unclear and discriminatory.
India is open to re-evaluating QCOs in areas such as medical devices and chemicals and has suggested a mutual recognition agreement with the US.
Under such an agreement, both countries would recognize and accept each other’s regulatory frameworks.
The inclusion of these proposals in the final trade deal remains uncertain.
The number of QCOs in India has surged from 14 in 2014 to over 140 since 2017.
