The public reaction to the India-US bilateral trade agreement and tariff reductions is mixed but generally positive, with hopes pinned on economic growth and manufacturing gains in India. There is optimism about increased market competition and consumer benefits due to lower prices and better products. However, concerns persist about the impact on domestic industries, job security, and geopolitical dependencies, especially with India's relationships with China and the US. Discussion also includes calls for India to maintain a balanced global economic strategy while pushing for lower domestic taxes.

India

United States

China

If trump becomes the reason I can finally afford Cheetos I'll be a bit conflicted

nekoliberal

Every indian should be on team USA on this one , indian tariffs are nightmarish remnants of the socialist era. Tariffs were used to protect the unproductive public sector industry but now it's being used by rent seekers like RIL , maruti , etc 

The only reason they have such steep tariffs is to protect domestic cartels

noxx1234567

In an internal analysis, New Delhi estimated such reciprocal tariffs would hit 87% of its total exports to the United States worth $66 billion, two government sources with knowledge of the matter told Reuters.

Under the deal, India is open to reducing tariffs on 55% of U.S. goods it imports that are now subject to tariffs ranging from 5% to 30%, said both sources, who sought anonymity as they were not authorised to speak to the media.

In this category of goods, India is ready to "substantially" lower tariffs or even scrap some entirely, on imported goods worth more than $23 billion from the United States, one of the sources said.

https://preview.redd.it/b8oe4vxnusqe1.jpeg?width=1079&amp;format=pjpg&amp;auto=webp&amp;s=ff4f14c7dc8c118e0c6a26e64bac45a83cbe3a18

Overall the U.S. trade-weighted average tariff has been about 2.2%, data from the World Trade Organization shows, compared with India's 12%. The United States has a trade deficit of $45.6 billion with India.

New Delhi wants to strike a deal before the reciprocal tariffs are announced and Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch will lead a delegation of officials from United States for trade talks from Tuesday.

The Indian government officials warned that cutting tariffs on more than half of U.S. imports hinges on securing relief from reciprocal tax.

The tariff cut decision was not final, with other options under discussion such as sectoral adjustments of tariffs and product-by-product negotiations rather than a wide cut, said one of the officials.

New Delhi estimated increases of 6% to 10% in tariffs on items such as pearls, mineral fuels, machinery, boilers and electrical equipments, which make up half its exports to the United States, due to reciprocal tax, both sources said.

The second official said the $11 billion worth of pharmaceutical and automotive exports may see the most disruptive impact due to reciprocal tariff, given their dependence on the U.S. market.

The new tariffs could benefit alternative suppliers like Indonesia, Israel and Vietnam, the official added. To ensure political acceptance by Modi's allies and the opposition, India has set clear red lines for the negotiations.

Tariffs on meat, maize, wheat and diary products that now range from 30% to 60%, are off the table, a third government official said. But those on almonds, pistachio, oatmeal and quinoa may be eased.

New Delhi will also push for phased cuts in automobile tariffs, now effectively more than 100%, a fourth official said.

Washington wants India to bring tariffs down to zero or negligible in most sectors, except agriculture, under the bilatera trade deal, Reuters has reported

To date, the Modi government has shown little appetite for sweeping tariff cuts of the kind Trump is seeking," said Milan Vaishnav, an expert on South Asian politics and economy at the Carnegie Endowment for International Peace think-tank.

"It is possible the Modi government could use external pressure from the Trump administration to enact politically costly, across-the-board cuts, but I am not holding my breath."

Financial_Army_5557

Edit: speaking as someone who has always opposed Trump and his economic policies.

It would honestly be a reality check for me if the Trump tariff policies actually results in the US getting a better deal from other countries. If India removes their tariffs on US goods due to Trump’s threats, that would be a positive outcome for America and most Indians.

Dmaa97

Lease_Tha_Apts

Great, they'll buy our stuff, and we will take their economically inactive people. I'm sure it'll work out in the long run.

AdNorth70

Wish we had info on the visas "nearly resolved" doesn't fill me with confidence

Pheanturim

It seems like every faucet of activity includes higher and higher immigration to the UK, won't be long until all our school teachers are from the third world if this carries on

Double_Comedian_7676

More visas for Indian workers. 

Brexit dividend number one.

nellion91

Please don’t flood this country with Indian migrants. Please for the love of anything holy. For fucks sake. I just have a feeling that they are going to flood this country with migrants and their dependents. I can’t deal with this anymore. If this happens I will leave.

Savage-September

&gt; A government source told the Guardian that mobility, which involves visas for Indian workers and has been one of the most contentious issues in the negotiations, had largely been resolved.

Extremely concerning given India was demanding it be made easier for Indian immigrants to come to the UK and they wanted to be excluded from National Insurance contributions, which would make it cheaper to hire an Indian over a British worker.

GhostMotley

Have a look at what's happening in Canada if you want to see what awaits us.

Serious_Reply_5214

Knowing from Chagos what Starmer's government's negotiation style is, I can only assume it went thus:

"I want 200k visas per year!"

"No, I insist, you must take 300k!"

"I will not settle for less than- wait, what?"

"You're right, I'm sorry. 350k."

Veritanium

I was just thinking we could use several thousand more people per year here, our infrastructure has plenty of capacity and our youth unemployment is near nil

tszewski

I’ll see your terrible IT job market and raise you wage suppression and nepotism

P1SSW1ZARD

The UK has taken around 250,000 Indians per year as part of the Boriswave of migration. Didn’t think that number could get any larger…

madjuks

The visas are apparently related to "business mobility" visas.   
[Only business mobility visas part of India-UK trade talks, House of Lords told - The Economic Times](https://economictimes.indiatimes.com/nri/latest-updates/only-business-mobility-visas-part-of-india-uk-trade-talks-house-of-lords-told/articleshow/118896960.cms?from=mdr)

Currently, these visas require a salary of more than £48,500 and have a sponsor. Not entirely sure what these deal entails with India though. [Senior or Specialist Worker visa (Global Business Mobility): Overview - GOV.UK](https://www.gov.uk/senior-specialist-worker-visa)

Wonderful_Welder_796

Sounds worryingly like Starmer caving in to foreign governments again, in this case on migration. Flooding our tech sector with Indians and pushing wages down is not good for anyone in this country.

Astriania

Just another backdoor mass immigration ‘agreement’. Come here and work for 6 months then claim asylum as India is ‘unsafe’. It’s a fucking joke

Main-Entrepreneur841

This will  erode the middle class and upper middle class **even more.** Indians are dam good doing any of those jobs.

If you work **any** comfy office job, be ready to be replaced because they are dam good at it. I was never a reform and co voter, but I'm never voting Labour again and it will go to whichever party puts an end to this. 

We're fucked.

IAmJustShadow

Great, so we are already off shoring loads of jobs to India. Now, we have to compete with them here and lower the wages in the process.

ShanTheMan1995

Farage and Co will be licking their lips over this, I can see the daily mail front page now - 

'Labour invite in 1.4 BILLION Migrants' 

This, the aftermath of Southport and the shitshow of the grooming gangs. Might as well hand over the keys to number 10 now because I dont see anyone but reform walking in the door.

You would have thought Labour had learned a lesson from the tory madness, oh well, might as well prepare for whatever shite is thrown at us next.

sisali

The other 10% is allowing free access for their hoards of people to enter the UK without visas

cornishpirate32

Finally, I'll be able to send all those delightful callers my iTunes giftcards all tarrif free!

Talkycoder

There's basically no benefit to us in having a free trade deal with India, so I'm interested in what we've conceded to get this through the door, as no doubt with the talk of visa relaxations, the cost will outweigh the benefit.

Crowf3ather

Every inch of the UK will be carved up and put up for sale to the highest foreign bidder. All this under the banner of sovereignty hahahaha. You have zero control left after Brexit over anything at all. We fucking told you so

Andries89

India still uses 2 men to operate a shovel, because the shovel is more expensive than the labour of 2 workers.

Good luck with competing with that on price.

Duanedoberman

This really doesn’t sound that beneficial to the UK on the face of it. 

128M in new trade agreements? It would be bigger news relatively if someone put a pound coin through my letter box.

SeaweedClean5087

because of AI a lot traditional IT jobs don't exist anymore. Does the British economy really need thousands of Indian nerds ?

narayan77

What is the upside to the UK on this deal? The last time I looked India was extremely protectionist , I don't see that changing, deal or no deal. I'd give this a pass really.

wage_zombie

On paper it looks good until there are two elderly in-laws and two elderly parents, a housewife and one man working in KFC, Co-op or Sainsbury’s local. You lot crack on though.

MeaningMean7181

Fuck sake Starmer and Co are so fucking useless. 

Clearly doesn't want a second term does he? Basically handing the next election to Reform on a silver platter.

Can't wait for increased wage suppression due to the job market being further flooded by Indians working for 15%+ less.

C-Sense

Remember brexiters: when you said we can make our own deals - in that negotiation would include more visas from countries you deemed less desirable.

dalehitchy

They produce almost nothing that we need. Why are we doing this?

yingguoren1988

All jokes aside, I hope there is at least a tiny bit of mandatory education required.

Culture and etiquette are very different between the uk and India and this doesn’t always result well.

vengarlof

The deal needs to involve repatriating Indians back home.

Bartellomio

If I told you one of the main reasons the NHS and Home Office are drowning in delays and backlogs is down to dodgy, glitchy IT systems shipped in from India, no one’d believe me. Bit like the Boeing fiasco, yeah? Rubbish software that’s not fit for purpose is (indirectly) costing lives and people waiting too long for diagnoses, or getting missed altogether. 

But the government couldn’t care less, ‘cause it’s dirt cheap to outsource it over there. Now guess what? We’re about to fling the floodgates wide open (God help us). Remember that ‘Indians only’ job ad? Pure exploitation of PSW visa holders, that was.

britanian-dystopia

We will become a colony of India within 50 years if a free trade agreement makes visas easy for India. A country of 60 million opening its doors to a country of 1.4bn is insane. even if just 1% of India's wanted to come here, that's 14 million people.

MerciaForever

We need to tread carefully here. Immigration does benefit both the host country and the migrants, and it might be racist to argue we should limit them, but as India develops more and more, they are an English speaking megapopuation who will work for pennies. The stereotype for indians being good at tech is already there. In a generation, they will be phasing out/replacing our services sector just like they have already taken most call centres. 

In the long run India is not an ally to the working class of Britain. They already are and will be moreso targeting and taking typical British service sector jobs just like they already have "taken" (more like got assigned) British/Western manufacturing.

RemarkableFormal4635

thats all we need to help the housing crisis... more immigration

Zealousideal_Fold_60

So how many millions must our tiny island accept now?

ProfileOk2226

Australia signed a free trade/migration agreement with India a few years ago, and China a few years before that, and the migration levels have been astronomical.  Housing has become a pipe dream, and everyone has to live in dog box apartments if they can find one.

When politicians unanimously agree that free trade agreements are the best thing since sliced bread, the general populace needs to start to get a lot more skeptical and pay a lot more attention to these agreements.

Trailblazer913

Jeez the racisim on reddit could fuel an nuclear power plant

Fragrant_State_3853

They give us all their workers to exploit and we give them what?

Appropriate_Car_3711

The two leaders discussed plans to double bilateral trade to $500 billion by 2030, which sounds great on paper. However, Trump also announced a "reciprocal" tariff plan, meaning the US will impose new tariffs on countries that it believes are unfairly taxing or restricting American goods. India is on that list, along with Brazil, Japan, Canada, and the EU. If these tariffs go into effect on April 2, they could increase costs for Indian exporters and shake up industries that rely on US trade.

# Impact on Different Sectors

* Indian pharma and IT exports at risk: The US is India’s biggest export market for pharmaceuticals and IT services, and any new tariffs or regulations could make Indian companies less competitive. Pharma stocks have already taken a hit because of this uncertainty.
* Defense and manufacturing gains: On the bright side, India is likely to increase defense imports from the US, with deals being discussed for fighter jets, naval systems, and surveillance equipment. Modi also highlighted India’s push for self-reliance in defense manufacturing, which could open up US-India joint ventures in the future.
* Small businesses might struggle: If tariffs rise on Indian exports, small and medium enterprises (SMEs) will be the hardest hit since they lack the financial cushion to absorb higher costs. Big corporations might manage better by diversifying markets or shifting production.
* Consumer prices could rise: If US-India trade tensions escalate, imported goods from the US (electronics, luxury brands, industrial machinery) might get more expensive for Indian consumers. The government’s push for "Made in India" might help in the long run, but shifting supply chains takes time.

Apart from trade, Modi’s visit also saw a meeting with Elon Musk, which hints at possible future collaborations in EV technology, space, and AI. 

Phew finally done. Dad keeps talking about it

obligatoryexistence

Above my pay grade. But in short, you buy fighter jets from me, and I will reduce my tariffs for you. Win-win for both.

Decent-Amphibian8433

First, right now Trump is saying many things, we don't know how much he really means! No one knows that.  

2nd people commenting about Personal relationships between Trump and Modi are dumb who want to see the Indian PM embarrassed.

Trump in a recent statement proposed a tariff based on the amount of tariff a country has imposed for the US, It will affect us as India has imposed a large chunk of tariff on Foreign goods which makes products from companies like US least affordable for the majority.                                                                                                                                                                        If Trump follows on the threat and somehow makes India decrease their Tariff plans, It will flood US products in India which will definitely kill Local brands.                                                                                                                                                                         Locally, most of the country will find Made in US superior to Made in India, in terms of quality, branding and ofcourse the US tag. Connect the dots and you'll see the bigger picture.

perpetual-war

Koi beizzati nahi hui.

Trump had long announced that he was going to target all countries with tariffs. He just announced that he is going to implement reciprocal tariffs. In layman’s terms, if India imposes tariffs of 40% on agricultural imports from the US, then, after Trump’s new rules, even the US will impose tariffs of 40% on agricultural imports from India.

Also, this isn’t specific just to India. These rules apply to Mexico, Canada, EU, UK, China, Japan, etc. - all countries that the US has trade with. When asked if there will be any exceptions, Trump said no. Of course, they may make exceptions later, but as of now, all countries are hit with the same tariff rules.

This, he had announced, before Modi’s visit to the US, so far back as during his campaign rallies before he even got elected. If you read older articles from last month, you will see this.

If Indians were expecting that Trump would make an exception for India (and hence “no beizzati”), they are foolish. Favoritism doesn’t help because then Trump would have to do so with other US allies too. This would ruin the whole point of the reciprocal tariffs.

Also, in my opinion, it’s fair game what Trump is doing. India used to charge 50% tariff on import of heavy duty motorbikes with engines above 1600cc. Think: Harley-Davidson motorcycles. So, a $1000 bike in the US will sell for $1500 in India due to Indian rules. That was deemed unfair by Trump. India actually has one of the highest tariffs of major countries (if you ignore the tiny ones). In the recent budget, this tariff was reduced to 40% by the Indian government.

Trump just said that if India reduces these further, he will reduce it further for India too. Reciprocal, which he considers is fair game.

Actually, he appreciated India’s tariff regime in the response to one question. He is a big believer in tariffs so much that he wants to get rid of (federal) income taxes in the US. He added how Harley-Davidson had to open a factory in India after which, the tariffs were no longer applicable on import of the full vehicle (since it is made in India). This supports job creation in India. Trump wants to do the same in the US; he wants cars to be manufactured in the US instead of Mexico and hence, he wants to levy high tariffs on automobile imports from Mexico. This will boost the car industry jobs in the US.

Long before Modi’s trip to the US, Trump had announced 25% tariffs on imports from Canada and Mexico and 10% on China. No one in Canada said “Trudeau was humiliated” nor did the Chinese say that “Xi was humiliated.” It is a very Indian concept to mock our own people and especially politicians you don’t align yourself with. 

Regarding impact on the Indian economy - those sectors which export goods to the US and that have high tariffs levied by India on US imports will suffer. Pharmaceuticals is one such industry. Also, small businesses will find it difficult to sell in the US because now, the same product will become more expensive in the US. If an American consumer can buy the product for cheaper from the US instead, they will most likely opt for that since consumers are price sensitive. 

For example, if a drug manufactured in India is worth $100 and a tariff of 40% is applied, the drug wi be sold in the US for $140. If a US manufacturer sells the same drug for $125, the American consumer will opt for the cheaper (American) product. This will man that the Indian company will have lesser sales and hence, lesser profits. With lesser profits, it could lead to reduction in force (job cuts) in that company in India. 

On the other hand, Trump has agreed to sell F-35 fighter jets to India. This is a big win for India.

Likewise, the US will extradite a Mumbai terror attack accused person living in the US to India. He hasn’t been convicted yet in India, but India is confident of that. This is a major win, especially because the person is just “accused”. The previous administrations had not done so. This also opens up the possibility of extraditing other accused terrorists and anti-national separatists. No, don’t worry, your average Redditor keyboard warrior won’t be extradited; no such individual’s rights are being threatened.

Separately, regarding Modi’s visit to the US, Trump had nominated Tulsi Gabbard as the US Director of National Intelligence. She got confirmed a couple days back. She is known to be a supporter of Modi and practices Hinduism (she is not of Indian origin). Trump knows this for sure and still nominated her. Gabbard, in her confirmation hearing, had even mentioned how she gets labeled as a Modi-supporter, among other labels. This could potentially be huge for India because it is considered that under Biden, the CIA was involved in regime change in Bangladesh which got the government of Sheikh Hasina being thrown out. Sheikh Hasina was seen favorable to India. Now, with Gabbard in that role of overseeing the CIA, NSA, DIA, FBI Intelligence Branch, etc., she may work alongside Modi, if needed. She met with Modi when he visited the US this week.

These are all considered wins, except the tariffs, which were well-known in advance to the entire international community. So there’s nothing new there and everyone would agree that reciprocity is fair game.

the_running_stache

goodatlife-2605

Here - https://www.reddit.com/r/AskIndia/s/ixY8w44o7r

finwizard777

It definitely sounds like Trump is way more dominating over Modi this time around, India was not able to extract any concessions from him….only promises to buy more from the US. Modi was on the defensive from day one, though better placed than many other US allies. It’ll be interesting how Modi balances the act between US and BRICS, there’s a risk of losing credibility there if India tries to appease Trump too much.

outrageous2121

But what I don’t understand is, if they tax India and China, whom are they going to buy it cheap from? Especially IT and pharmaceutical products. Who else is at the scale of China and India, and is not taxing US? So in the end, it’s just US people who will have to pay more for buying these stuff right?

Right? Or are we doomed as everyone is saying?

Human_Way1331

If we could buy better quality products from the US at reasonable prices, that would be good.

Excellent_Shop_8685



🔗 **Bypass paywalls**:

* [www.reuters.com
                ](https://www.removepaywall.com/search?url=https://www.reuters.com/world/india/india-backs-ev-tariff-cuts-trump-trade-deal-defying-autos-lobby-sources-say-2025-04-02/)  

📣 **[Submission Statement by OP](/r/GeopoliticsIndia/comments/1jpnu1b/exclusive_india_backs_ev_tariff_cuts_for_trump/ml0ky8x/)**:
&gt; SS: ### **Summary: India’s EV Tariff Cuts in US Trade Deal**  
&gt;
&gt;India plans to lower import tariffs on electric vehicles (EVs) as part of a trade deal with the United States, despite opposition from local automakers like Tata Motors and Mahindra &amp; Mahindra. The domestic auto industry had lobbied for a delay in tariff cuts until 2029, fearing that immediate reductions would harm local investments.  
&gt;
&gt;However, New Delhi is prioritizing the trade agreement, aiming to strengthen ties with U.S. President Donald Trump, who has criticized India’s high tariffs. Tesla, which is preparing to enter the Indian market, would benefit from these reductions.  
&gt;
&gt;Automakers worry that the deal may set a precedent for similar trade talks with the European Union and the UK, increasing competition in India’s developing EV market. India's EV sales currently make up only 2.5% of total car sales, and the government aims to increase this to 30% by 2030.  
&gt;
&gt;While carmakers are open to gradual tariff reductions on gasoline vehicles, they argue that premature EV tariff cuts would undermine the government’s incentive programs for local manufacturing, which run until 2029. 

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GeoIndModBot

If Indian negotiators are smart, then they’ll offer 0% tariffs on just Tesla, no other American EV. That’ll keep the duo happy and Indian EV makers can rest easy because Tesla’s are pricey enough to let them keep the mass market.

JunkReallyMatters

I rather have a foreign EV than having to import crude oil forever. Moreover, the competition will be useful to get the local players on their feet. It could also open US markets for Indian companies.

nandeeshwara

I have a naive question - Why Modi administration bend the knee?
EV tariffs, entry of starlink, buying US oil, somewhat accepting we orchestrated assassination on US soil, among many other things.
Did we get anything beneficial out of Modi's visit? May be nuclear, but they were willing to sell it anyway, but anything else? Doesn't seem like a huge win.

Or were they blackmailing again like H1Bs and GCCs?

viva_la_revoltion

Good. More free market and competition is better for the economy.

Curious_Bunch_5162

Why are they crying now. They had much time to grow ev. But they didn't. And they would not have thought about it if goi didn't lessened the tariffs. Now they will have to do so because future is with ev for now. More and more people will start buying EVs and shifting from disel.

Background-Exit3457

SS: ### **Summary: India’s EV Tariff Cuts in US Trade Deal**  

India plans to lower import tariffs on electric vehicles (EVs) as part of a trade deal with the United States, despite opposition from local automakers like Tata Motors and Mahindra &amp; Mahindra. The domestic auto industry had lobbied for a delay in tariff cuts until 2029, fearing that immediate reductions would harm local investments.  

However, New Delhi is prioritizing the trade agreement, aiming to strengthen ties with U.S. President Donald Trump, who has criticized India’s high tariffs. Tesla, which is preparing to enter the Indian market, would benefit from these reductions.  

Automakers worry that the deal may set a precedent for similar trade talks with the European Union and the UK, increasing competition in India’s developing EV market. India's EV sales currently make up only 2.5% of total car sales, and the government aims to increase this to 30% by 2030.  

While carmakers are open to gradual tariff reductions on gasoline vehicles, they argue that premature EV tariff cuts would undermine the government’s incentive programs for local manufacturing, which run until 2029.

BROWN-MUNDA_

So what about Japanese and Korea cars made in USA .Will we get Sequioa and Telluride here in India ?

Even_Possibility_591

I genuinely want to know what is the status of bilateral trade agreeement between them because India has never opened up their market like this and several key reforms like labor are still pending. Modi is many things but he isn't stupid.

Adorable-Puff

Not clubbed with allies like canada or mexico, not clubbed with enemies like China. Multi alignment certainly seems to be working well right now.

HungryHungryHippoes9

SS: India will not be treated like China, Mexico and Canada, trade officials from the US have indicated to their counterparts in Delhi, where they held their first in-person meeting on Wednesday to negotiate a bilateral trade agreement – a process now put on “fast track”, people aware of the matter said.

The hectic parleys come against the backdrop of the looming April 2 deadline when the US is due to enforce reciprocal tariffs. Shortly after taking office on January 20, President Donald Trump resumed a trade war with China and opened two new ones with Canada and Mexico, effectively triggering disputes with the country’s three largest trading partners.

“It is now amply clear that the Trump administration does not club India with countries like China, Mexico and Canada. There is a difference,” said one of these officials with direct knowledge of the matter. “The US has serious issues with China, Mexico and Canada related to currency manipulations, illegal migration and other security concerns. But with India it has only tariff issue, that too both are resolving amicably,” this person added.

SolRon25

What’s the way forward, India if subject to selective tariffs would be uncompetitive. Probably has to lower the tariffs imposed on US things. India has already started waiving off many existing barriers in the fields of motorcycles, EV, software- so we might see some more such steps.

nuvo_reddit

India is just like a chill person amidst the chaos in geopolitics

Crazyafk

No, because India is a Russian ally in many things. Trump has not yet taken any action hostile to Russia

bigoldgeek

In other words, Trump views India as more financially fragile and can be manipulated to the US' benefit without any concern for major retaliation.

read between the lines people.

Electronic-Win4094

India and the US are negotiating a bilateral trade agreement to drastically increase trade, with India considering tariff reductions.

India and US Bilateral Trade Agreement and Tariff Reductions

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