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Business On one hand, there are continuous indications from America (US) that the 50% higher tariff imposed on India can be reduced. President Donald Trump himself has given such statements. Now if reports are to be believed, India also seems to be in a mood to provide relief to America. In this, it is being said from the officials related to India-US Trade Deal that if US cuts the tariff, then India is also ready to reduce the tariff on all the products.
50% decline in exports still stopped
According to a Reuters report, India’s resilient domestic economy and smaller-than-expected decline in exports are benefiting India in its ongoing trade deal negotiations with the US. Exports to America fell 8.6% year-on-year in October to $6.3 billion, but this is much less than the 12% decline in the previous month of September. Whereas in both the months the effect of 50% tariff imposed by America on India was visible.
‘Escaped from worst impact of tariffs’
Quoting a senior official, it has been told in this report that at present, we have been saved from the worst impact of 50% American tariff. However, he said that there has definitely been a big decline in textile export orders, but the broader economic impact is limited. This creates scope for India to take more deliberate steps in trade talks. India has also made it clear that no agreement will be made in haste, as countries like Japan and South Korea have done with the US.
India can reduce tariff on 80% goods
Officials familiar with the India-US trade deal have expressed hope that the US will eventually reduce the 25% tariff imposed on India on Russian oil purchases and move towards an overall 15% tariff. He said that in return India is ready to reduce tariff on more than 80% goods, but while giving protection to other sensitive sectors including agriculture.
These figures also bring relief
Trade figures from April to October 2025 are also a relief. Due to strong demand for engineering products, pharma, electronics and gems and jewellery, America remains India’s top export destination with $52.12 billion. UAE, Netherlands and China followed with exports of $22.14 billion, $11.98 billion and $10.03 billion respectively.
Meanwhile, China remains the largest source of imports for India, demonstrating the country’s continued dependence on vital global supply chains. Meanwhile, Indian exporters have also diversified and accessed African and European markets.
