India is considering tariff reliefs on US imports as Washington prepares to impose reciprocal duties on Indian exports by April 2, triggering concerns that New Delhi is making pre-emptive concessions rather than defending its trade interests.
A high-level inter-ministerial panel is set to submit its report by March 15, assessing potential tariff cuts and adjustments.
The Prime Minister’s Office will make the final decision, but critics argue that India’s approach reeks of submission rather than strategic resistance.
"This looks less like a trade negotiation and more like a meek surrender," a trade analyst said, requesting anonymity.
"India should be demanding fair treatment, not rushing to lower duties in the hope of avoiding Trump’s wrath."
The review focuses on tariff bands between 15 per cent and 80 per cent and whether reductions can be made at the eight-digit product classification level.
India has already slashed duties on bourbon whisky, fish hydrolysate, scrap materials, satellite equipment, ethernet switches, and motorcycles — cuts that critics see as a desperate attempt to placate Washington without gaining anything in return.
"The Modi government is scrambling to appease the US instead of standing firm," analysts said.
Congress party leader Jairam Ramesh slammed the move, calling it a "negation of global trade norms." In a post on X, he said Modi should remind Trump that "the T in WTO stands for Trade, not Trump."
"Modi’s pledges to buy more U.S. oil and weapons might reduce the immediate tariff shock, but at what cost?" said a senior economist.
Ram Singh of the Indian Institute of Foreign Trade (IIFT) urged India to go beyond tariff negotiations and leverage its influence in global governance institutions.
"India should not respond with tariff measures but must simultaneously mobilise efforts at global institutions to highlight the brazen disregard of established rules and norms by the US government," Singh said.
He emphasised India must "poke others on currency and intellectual property rights (IPR) issues to remind Washington of India's counterbalancing power against China."
"We must remind them silently that India's geo-strategic partnership is not a blank cheque. If the US wants India to remain a key ally, it cannot treat us like a subordinate," Singh said.
Moody's caution
Moody's Ratings on Tuesday said India has a lower overall exposure to the US relative to others in the Asia-Pacific region, although certain sectors such as food, textiles and pharmaceutical products face risks, reports PTI.
Moody's said most companies in its rated portfolio are domestic-focused with limited exposure to the US market.