Archive · 24 Jul 2025
India Eyes US Trade Deal to Boost Labor-Intensive Exports
India might get a special deal with the US where they pay less in taxes (tariffs) to sell certain products.
A top advisor says this could be really good for India, especially if other countries have to pay more.
They're trying to make a deal before August.
The advisor thinks helping companies make things in India and using new technology is more important than just getting money.
They point to how successful it has been to get Apple to make iPhones in India.
India's economy isn't as focused on trading as some other countries in Asia.
NITI Aayog Vice Chairman Suman Bery sees a potential advantage in a US trade deal with lower tariffs on Indian labor-intensive products.
Negotiations are underway, aiming for a deal before President Trump's August 1 deadline.
Bery notes that lower tariffs than competitors could offer significant opportunities for India.
The Indian growth model is less trade-intensive compared to other Asian countries.
Bery emphasized the importance of linkages and technology over capital for growth, citing the success of production-linked incentives (PLI).
- Who
- NITI Aayog Vice Chairman Suman Bery.
- What
- Potential trade deal between the US and India.
- When
- Negotiations are ongoing, aiming for a deal before August 1.
- Where
- The US.
- Why
- To potentially gain advantage via lower tariffs for labor-intensive products.
Proponents
Opponents
Tariff Rates
Proponents
Lower tariffs on Indian labor-intensive products.
Opponents
Higher tariffs on Indian labor-intensive products.
- Key Figure
- Suman Bery
- Organization
- NITI Aayog
- Deal Deadline
- August 1
- Tariff Rate (Vietnam)
- 20%
- Tariff Rate (Bangladesh)
- 35%