There may be quick relief in the huge tariffs imposed on India by America. Chief Economic Advisor (CEA) V Anant Nageswaran hoped on Thursday that the resolution of the dispute with the US over high tariffs could be resolved in the next eight to ten weeks. The US had imposed an additional 25 percent tariff on Indian products from August 27 for the purchase of oil from Russia. With this, the total tariff in America on Indian products has increased to 50 percent.

The conversation continues behind the curtain- V Anant Nagswaran
Nageswaran said in a program organized by the Board of Industry, ‘Negotiations are going on between the two governments behind the screen. I estimate that the tariff imposed by the US on Indian goods will come out in the next eight to ten weeks. He further said-‘I believe that punitive fees will not be applicable after November 30’. However, he warned that the export of Indian things to America may decline in the event of tariff continuing.

The relationship between the two countries due to tariff
After US President Donald Trump’s tariff growth decision, the relationship between the two countries became tense for some time. However, after receiving favorable indications at the level of top leadership, the discussion about the trade agreement between the two countries has started again. Describing India as a low-middle-income aspiration economy, the Chief Economic Advisor said that in the first quarter of the current financial year, the actual GDP (GDP) increased at a rate of 7.8 percent. After the Kovid epidemic, India has registered a faster growth compared to many countries. He said that with the progress of manufacturing, service and agricultural sectors, strengthening of rural demand and improvement in urban demand will give the basis of economic growth in the next two years.

What Nageshwaran said on relief in GST rates?
Nagswaran said that the relief given in GST rates recently will increase additional income in the hands of consumers. The MSME sector has increased loans and large industry units are facing structural changes in debt distribution. He said that in the first quarter of the current financial year, the current account deficit of GDP was reduced to 0.2 percent and foreign exchange reserves are also healthy. He said, “Though the rupee is weakening against the dollar, but given the strength of the economy, I am sure that the rupee will maintain its value in the long run and it will also strengthen it.”

Nagswaran said that the priorities of the government include capital expenditure, encouragement of private investment and improvement in regulatory structure. He called upon the private sector to spend more on innovation and research. On the impact of AI on the Arthi system, he said that its impact is limited at present but there will be pressure on coding jobs. He said that in such a situation people will have to increase their skills.

After the announcement of Donald Trump, the US has implemented 25 percent extra tariff on India, after which India has made a dhanw plan to break this tariff. Actually, Trump’s tariff is going to affect India’s textile industry. India has prepared its plan to deal with it.

The government has planned to contact 40 countries to save the textile industry and promote clothes exports. A government official gave this information on Wednesday (August 27, 2025). The initiative includes major countries such as Britain, Japan, South Korea, Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turks, United Arab Emirates (UAE) and Australia.

America’s tariff will not affect

The official said, ‘India will work towards becoming a reliable, quality, durable and innovative textile products in these 40 markets. Indian Mission and Export Promotion Councils (EPCs) will play an important role in this. Although India already exports clothes to more than 220 countries, these 40 countries together import global clothes and apparel of about $ 590 billion. India’s share in this import is currently five-six percent.

The official said that this initiative of special contact with these countries in such scenario is going to be an important step towards market diversification. The additional 25 percent fee imposed on Indian products by the US has come into effect from August 27.

Expectation of adverse effects on exports of these areas

Trump’s tariff is expected to affect the export of areas such as textiles, gems and jewelery, leather, fish, chemicals and machinery. Export damage to the US alone can be $ 10.3 billion.

Mithileshwar Thakur, General Secretary of the Apparel Export Promotion Council (AEPC), said, ‘The 25 percent fee rate had already been accepted by the industry, but now India’s competitiveness has declined by 30-31 percent compared to countries like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia due to additional 25 percent fee. With this, the Indian textile industry is almost out of the American market.

Demand for immediate financial relief from government

He demanded immediate financial relief from the government, so that the industry could overcome the crisis. He also said that the textile industry is now exploring the possibilities of compensation for losses through trade agreements with Britain and EFTA countries. Under the government’s scheme, EPC will identify estimation of export markets and products with high demand.

Apart from this, he said that clothing product clusters like Surat, Tirupur, Bhadohi will be linked to international occasions. Also, under the ‘Brand India’ campaign, participation in international exhibitions and business fairs will also be ensured. Free trade agreements and trade agreements can help make Indian products competitive. In such a situation, this strategic effort for India can become an opportunity to strengthen its position in the global textile export market.

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India usa trade deal: The long -running bilateral trade talks between India and the US have now reached a decisive turn. While the US wants India to give concession in import duty on dairy and agricultural products. At the same time, India has refused to do so. All this is happening at a time when both countries are trying to finalize an interim trade agreement. This agreement can later be the basis of a comprehensive bilateral trade agreement (BTA). The dialogue has been going on in Washington since the end of June and is now the sixth day, but no concrete consent has been announced yet.

India told the dairy sector ‘red line’
According to the top sources of the Government of India, India has dismissed the demand for giving discount in tariffs on dairy products by the US. More than 8 crore people get employment in India from this region, most of which are small farmers. A senior official said bluntly, “There is no question of giving any concession on dairy. This is our red line.” The government believes that exemption in sensitive areas like agriculture and dairy can be disastrous for India’s rural economy.

Rajesh Aggarwal’s journey increased, Jaishankar also gathered in efforts
Rajesh Aggarwal, Special Secretary, Ministry of Commerce, who is leading the Indian delegation, has extended his journey in Washington one more day with the aim of removing the deadlock. The talks started from 26 June and now have entered the sixth day on Tuesday. The talks are likely to continue on Wednesday.

Meanwhile, External Affairs Minister S.K. Jaishankar is also in the US and is about to meet his American counterpart Marco Rubio during a diplomatic meeting. This meeting is also considered important towards breaking the deadlock in business talks.

India’s priorities- tariff concession in labor-dominated areas
There is a demand from India that the US should give exemption in import duty on labor-dominated areas such as textiles, costumes, gems and leather, plastic, chemicals, shrimp, oilseeds, grapes and bananas. According to government sources, “The concession on these products is not a threat to the domestic interests of America, so the possibility of opposition is also very low.” India believes that exemption in these areas will provide relief to its exporters and domestic employment will also be encouraged. The purpose of this interim agreement is to eliminate heavy duty (up to 26%) on Indian exports. The US wants to fulfill this agreement before the deadline of July 9.

Tariff Deadline and American Pressure
If the dialogue fails, the US can again apply tariffs up to 26%. According to PTI, an official said, “If the business talks fail, the 26 percent fee will be again impact.” The mutual fees imposed on Indian products on April 2 were suspended for 90 days. But the original tariff of 10% is still applicable. India wants permanent exemption from these additional charges so that exports do not be interrupted.

America’s demands and India’s challenge
America is demanding concession on dairy and agricultural products from India. These include industrial items, electric vehicles, wine, petrochemical products, apples, dry fruits (tree nuts), and gene-reflected crops. But it is difficult for India to accept all this, because most farmers of the country are dependent on traditional and marginal farming and any kind of external competition will directly affect them.

A target of $ 500 billion by 2030
India and the US want to finalize the first phase of their proposed bilateral trade agreement (BTA) by September-October this year. Its goal is to reach bilateral trade by 2030 to $ 500 billion. Currently, this trade is around $ 191 billion.

However, if there is no compromise on disputed topics like agriculture and dairy, then this goal can be difficult. India says that it will not accept any foreign pressure at the cost of its farmers and rural economy.