In the course of its ongoing trade talks with the United States, India is advocating for reduced import levies on its exports of textiles, leather goods, and footwear.
Since high tariffs—which sometimes reach 48%—have made them less competitive, these industries, which are vital to India’s export economy, have long yearned for better market access in the US.
As part of the ongoing Trade Policy Forum (TPF) discussions, officials say India has requested the US to evaluate and lower these excessive import taxes. The goals of these discussions are to improve bilateral trade, settle outstanding disputes over market access, and look into potential future collaborations.
India is attempting to increase exports from its labour-intensive industries at the time of its request. Millions of people are employed in the leather, textile, and footwear sectors, which also significantly contribute to the growth of small and medium-sized businesses (SMEs).
They would be much more competitive on the world stage and have more opportunities in the US market if duties were reduced.
Concerns over awaiting licenses in the pharmaceutical industry, difficulties obtaining visas for Indian specialists, and data adequacy under digital commerce standards have also been brought up by the Indian delegation.
In exchange, the US wants better digital trade regulations, faster regulatory procedures for medical products, and increased access to Indian agricultural markets.
Following years of tense relations brought on by tariff increases and the 2019 removal of India’s benefits under the US Generalised System of Preferences (GSP), trade engagement has resumed.
In order to promote a more equitable and advantageous trading relationship, both nations are currently concentrating on resolving long-standing difficulties.
With an emphasis on expanding market access and encouraging fair trade practices, the TPF—which was resurrected in 2021—is a crucial forum for resolving trade issues and fostering trust between the two countries.
