New Delhi: In a significant move to strengthen its trade relations, India has reduced its average applied tariffs for several key developed countries, including Australia, the UAE, Switzerland, and Norway. This is part of a series of bilateral trade agreements aimed at fostering mutual economic growth and enhancing market access for both parties. The decision to lower tariffs reflects India’s commitment to creating a more open and business-friendly trade environment with these nations.
Sources indicate that similar tariff negotiations are currently underway with other global economic partners, including the European Union and the United Kingdom. Ongoing talks with the United States are also crucial in this broader context, as both countries work toward a comprehensive trade deal that addresses a range of sectors. The adjustments to tariffs and other trade-related matters are seen as a way to strengthen diplomatic and economic ties with these countries.
The progress with the United States has been particularly noteworthy. In February 2025, India and the U.S. agreed to begin discussions on a multi-sector Bilateral Trade Agreement (BTA), with the first tranche expected to be finalized by the fall of 2025. During this period, India and the U.S. aim to explore various aspects of their trade relationship, including tariff reductions, market access, and regulatory cooperation. The agreement, once completed, is expected to open new avenues for trade and investment between the two countries.
Prime Minister Narendra Modi and U.S. President Donald Trump have both designated senior representatives to lead these negotiations. To further facilitate the process, an Indian delegation led by the country’s Commerce and Industry Minister recently visited Washington, where they met with U.S. Commerce Secretary Gina Raimondo, U.S. Trade Representative Katherine Tai, and their teams to advance discussions on key trade issues. These talks reflect the growing importance of bilateral cooperation, especially as both nations seek to boost trade and collaboration across various sectors, including technology, manufacturing, and services.
Sources familiar with the discussions noted that the focus on tariffs is just one component of the broader trade negotiations. Prime Minister Modi’s recent visit to Washington highlighted these discussions, where both sides acknowledged the importance of addressing their respective interests and trade sensitivities. While the negotiations are still in their early stages, officials from both India and the U.S. have expressed optimism about the potential for a mutually beneficial agreement.
However, sources cautioned that it is still too early to predict the specific outcomes of these negotiations, as each side works to ensure that their key concerns are addressed. The details of the proposed BTA will likely evolve as both nations continue to deliberate on the terms of the agreement.
The ongoing talks with the European Union and the United Kingdom are also pivotal in India’s efforts to strengthen its global trade position. As India continues to engage in negotiations with its major trading partners, it is clear that the government is taking proactive steps to ensure that the country remains a key player in the global trade landscape.
Overall, the reduction in tariffs for key trade partners marks a significant shift in India’s approach to international trade, as it looks to open new markets and foster deeper economic ties with its global partners. As discussions with the U.S., EU, and UK continue, India is positioning itself as a dynamic participant in shaping the future of international trade.
