NEW DELHI – Following Donald Trump’s re-election, India is considering offering greater market access to U.S. firms, contingent on reciprocal concessions from Washington, sources familiar with the discussions have said. President-elect Trump, who has been vocal about trade imbalances and criticized India’s high tariffs during his campaign, labelled the nation as a “very big abuser” of trade relations and vowed to raise U.S. tariffs.
Despite these criticisms, Trump’s relationship with Indian Prime Minister Narendra Modi during his previous term from 2017 to 2021 was strong, with both leaders showing mutual admiration. Talks of a limited trade deal had nearly reached fruition before the COVID-19 pandemic disrupted negotiations.
One source indicated India’s willingness to reduce tariffs in sectors like automobiles, provided that better trade terms for Indian exports are secured. Harsh Vardhan Shringla, India’s former ambassador to Washington, expressed optimism, stating, “His second term will be even better because the two sides have developed mutual respect.”
India views Trump’s direct, transactional approach as beneficial for trade negotiations. Meanwhile, India remains confident in its trade ties under Trump, as the president’s tariff threats are primarily focused on China. India’s U.S. trade ties have grown over the past decade, with the U.S. serving as India’s top export market, accounting for $120 billion in exports in 2023.