US Commerce Secretary Howard Lutnick expressed optimism about enhancing India-US trade relations, particularly advocating for the opening of India’s agricultural trade during his virtual address at the India Today Conclave on Friday. Lutnick underscored the importance of negotiating a fair trade agreement in light of President Donald Trump’s plans to impose reciprocal tariffs on countries, including India.
Lutnick stressed that India must open its agricultural market to align with its status as an ‘important trading partner’ with the US. He suggested that employing strategies such as quotas and limits could pave the way for opening up the Indian agricultural market in a pragmatic manner.
While addressing queries on whether lowering import duties on agricultural products could be politically challenging for Prime Minister Modi, Lutnick noted the mutual understanding needed to reach a viable solution. He dismissed concerns that tariffs would lead to inflation, particularly in the American context, pointing to India’s high tariffs yet low inflation as evidence.
The Commerce Secretary emphasized the aim to craft a macro-level trade agreement by 2025, focusing on comprehensive cooperation rather than individual product discussions. Lutnick reiterated the US’s commitment to reciprocity in tariffs, indicating a significant reevaluation of India’s existing high tariff rates would be necessary as part of this negotiation.
With the US pusuing a broad-based trade agreement, Lutnick highlighted the potential for a transformative economic partnership between India and the US. This aligns with the overarching mission set by President Trump and Prime Minister Modi to double bilateral trade to USD 500 billion by 2030, enhancing prosperity and innovation across both nations.
(With inputs from agencies.)