India Sees US Trade Deal as Key to Lowering External Risks

A successful trade deal with the US could help India mitigate external risks and boost its exports, the South Asian country said, as its government seeks to speed up talks and reach an interim agreement.

“A successful US-India trade agreement could flip current headwinds into tailwinds,” India’s finance ministry said in its monthly economic review Tuesday. “The risk of renewed trade barriers remains a key external vulnerability.”

External risks for India persist, primarily from the 26% US tariff on Indian imports even as a temporary suspension is in place, it said.

India is currently discussing a US trade ...