Archive · 2 Jun 2025
India Eyes Trade Deal with US Amid Tariff Pause and Currency Trends
India and the U.S. are trying to make a trade deal.
India is offering low tariffs on most products to the U.S. while the U.S. is planning to keep tariffs on Indian goods at 10%.
India hopes to gain from trade as businesses shift away from China.
Currency values are also important.
Experts believe the rupee will trade around 83 to 85 per U.S. dollar.
One economist notes that Indian non-tariff barriers like domestic quality control orders could remain a challenge.
Overall, India is in a good position in Asia even with some global challenges.
India is aiming to sign a preliminary trade deal with the US during the 90-day tariff pause.
India has offered zero tariffs on most products to the United States.
The U.S. is looking to maintain tariffs on Indian goods at 10%.
The rupee is expected to trade between 83 and 85 per U.S. dollar.
Non-tariff barriers like quality control orders remain a point of discussion.
- Who
- India and the United States are the primary parties involved.
- What
- India aims to sign a preliminary trade deal with the US within the 90-day tariff pause.
- When
- Ongoing discussions with a 90-day tariff pause in effect.
- Where
- The focus is on trade between India and the United States.
- Why
- To potentially benefit from trade diversion away from China and improve export competitiveness.
US Economic Outlook
Indian Economic Outlook
Trade Negotiations
US Economic Outlook
Non-tariff barriers could present an issue for India.
Indian Economic Outlook
A favorable trade deal could give India a better position.
- Rupee's Expected Trading Range (per USD)
- 83-85
- US Tariff Rate on Indian Goods
- 10%
- India's Offered Tariff on US Goods
- 0%
- Number of US Non-Tariff Barriers Listed to India
- 70
- Expected Headline Inflation
- 3.8%
