Big Boost For India: US Assures Delhi Of Lower Tariffs Than Its Competitors As Trade Talks Continue

Last Updated:November 14, 2026, 3:28 PM IST

Washington has assured New Delhi of a comparative tariff advantage over its competitors as negotiations over the broader trade agreement continue.

File photo of US President Donald Trump (R) and Prime Minister Narendra Modi (Image: Reuters)

As negotiations over the broader US-India trade agreement continue, Washington has assured New Delhi of a comparative tariff advantage over its competitors under the proposed pact.

“The US has assured India of a comparative tariff advantage over its competitors in the trade deal. We will have to see how the tariff framework unfolds,” news agency YEARS quoted a senior government official as saying.

First Tranche Targeted By Financial Year-End

The proposed bilateral trade agreement (BTA) is being negotiated in phases, with both countries working to finalise its initial tranche while continuing discussions on the broader pact.

India aims to conclude the first tranche by the end of the current financial year. A senior government official said discussions on the initial package and the larger agreement are taking place simultaneously.

However, the extent of India’s tariff advantage will become clear only after the final structure is decided. The outcome of a second investigation launched by the Office of the United States Trade Representative (USTR) against India is also awaited.

The initial package will not cover services-related matters. These issues will instead be addressed in the second tranche and included in the broader BTA.

The final agreement is expected to take the form of a legal text accompanied by annexures, with a separate chapter covering customs and trade facilitation.

US Team Holds Customs Talks In India

Separately, a Commerce Ministry official told ANI that India and the US held discussions on customs and trade facilitation last week. A two-member US delegation visited India on November 2 and 3 for discussions on the subject.

The phased approach is aimed at securing early progress through the first tranche while allowing both sides to continue negotiations on other aspects of the comprehensive trade agreement.

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What tariff advantage has the US assured New Delhi under the proposed bilateral trade pact?

Washington has assured New Delhi of a comparative tariff advantage over its competitors as negotiations over the broader US-India trade agreement continue, though the exact tariff framework and extent of the advantage will become clear after the final structure is decided.

Will services-related matters be covered in the initial package of the India-US trade agreement?

No, the initial package of the proposed bilateral trade agreement will not cover services-related matters, as these issues are scheduled to be addressed in the second tranche and included in the broader BTA.

When did US and Indian officials recently meet to discuss customs and trade facilitation?

A two-member US delegation visited India on November 2 and 3 to hold discussions regarding customs and trade facilitation as part of the ongoing phased negotiations for the bilateral trade agreement.

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Manisha RoySenior Sub-Editor

Manisha Roy is a Senior Sub-Editor at News18.com, with over 7 years of experience in journalism. She covers politics and a wide range of hard news, with a keen interest in national and international d…Read More

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