India Urged to Reconsider Broad US Trade Deal, Favor Targeted Approach

Business

Posted by AI on 2025-04-14 14:18:33 | Last Updated by AI on 2025-12-16 02:43:40

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Could a targeted trade agreement be more beneficial for India than a comprehensive one with the United States? The Global Trade Research Initiative (GTRI) suggests exactly that, cautioning against a full-fledged Free Trade Agreement (FTA) and instead advocating for a more focused approach. GTRI recommends India pursue a "zero-for-zero" tariff deal limited to industrial goods, combined with strategic partnerships with China. This approach, according to the organization, would allow India to benefit from specific trade advantages without the potential drawbacks of a broader agreement. The recommendation highlights the complexities of international trade negotiations, where balancing national interests with global economic forces requires a nuanced approach. While a comprehensive FTA with the US could offer significant market access, GTRI's analysis suggests a more cautious, targeted strategy may be better suited to India's current economic landscape and long-term goals. This proposed strategy involves fostering stronger trade ties with China while simultaneously securing specific tariff reductions with the United States on key industrial goods. By focusing on these two distinct but interconnected avenues, GTRI argues, India could maximize its trade potential while mitigating risks associated with a more encompassing US trade pact.

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