India Ready As US Tariff Suspension Nears End; Trade Pact Hinges On Mutual Gains: CII President

New Delhi, July 7 (KNN) With the 90-day suspension of US-imposed reciprocal tariffs on Indian exports set to expire on July 9, the Indian industry remains watchful yet prepared for any outcome from ongoing trade negotiations with Washington. 

Confederation of Indian Industry (CII) President Rajiv Memani reiterated that India would not enter into any agreement that compromises national interests.

“There is no compulsion… India will only do this deal when it serves both India’s and America’s interests,” Memani told ANI, affirming that extensive consultations had taken place with stakeholders across sectors and scales of business. “The Indian government has taken time to understand industry concerns, issues, and opportunities,” he added.

The upcoming deadline has gained significance as it may mark the re-imposition of a 26 percent additional duty on Indian goods entering the US, potentially affecting key export-driven sectors such as pharmaceuticals, IT services, and automotive components. 

Memani acknowledged that certain industries could face short-term challenges if an agreement is not reached, but emphasised that industry remains aligned with national priorities.

“The automotive sector, in particular, is exposed due to Mexico’s zero-tariff access to the US. If there's a 25 percent duty gap, Mexico gains a clear competitive edge,” Memani explained. 

He also flagged competitiveness concerns for India’s garment exports, which face a 20 percent tariff disadvantage compared to Vietnam.

Even if a deal materialises before the deadline, Memani cautioned against expecting immediate gains. “FTAs are a long game,” he said, noting that structural adjustments on both sides and improvements in competitiveness would be necessary for Indian businesses to fully benefit. 

He expressed optimism that the trade pact could eventually lead to increased American investment in India and stronger two-way commercial ties.

“Trade deals are two-way. Some things will be favourable, others may pose challenges,” Memani concluded, underscoring that Indian industry remains committed to resilience and national interest — with or without a deal.

(KNN Bureau)