India is rushing to close a trade deal with the US and the UK amid the impact of the Iran-Iran conflict.

India is continuing trade negotiations with the United States and the United Kingdom, hoping to mitigate the risks from tariffs and attract investment amidst the impact of the Iran-Iran conflict.

June 2, 2569 at 14.28:XNUMX a.m. Bloomberg News reported that India is facing a crucial test in trade negotiations with two of its major trading partners: the United States and the United Kingdom. The effort aims to protect Indian exporters from tariffs and trade restrictions that could negatively impact the country's economy.

This week, New Delhi is preparing to welcome a U.S. trade delegation. led by Brendan Lynch Chief of the trade negotiating team meanwhile Peter Kyle UK Minister for Business and Trade He also traveled to India.

India pressures the UK over steel tariffs.

The Indian government has warned that it may review or reduce some benefits under the free trade agreement (FTA) signed with the United Kingdom last year if the UK does not exempt it from safeguard measures for the steel industry, which are set to come into effect next month.

India views these measures as potentially limiting market access for Indian steel exporters and diminishing the benefits they should receive from the free trade agreement between the two countries.

High-ranking officials of the Indian government. Revealed on Monday that If the dispute is not resolved, New Delhi may consider reducing its market access to several UK products, including Scotch whisky, one of Britain's key exports.

Speed ​​up the trade deal with the United States.

Meanwhile, India is urgently negotiating with the United States to secure an exemption from any potential tariffs arising from the ongoing US trade investigation.

Although the two countries had previously reached an interim trade pact, uncertainty remains after the U.S. Supreme Court ruled to overturn the reciprocal tariffs that President Donald Trump had used as a key trade tool.

However, following this, the U.S. Trade Representative (USTR) launched an investigation under Section 301 of the U.S. trade law against several countries, including India, citing concerns about forced labor and overcapacity.

If the investigation yields negative results, the United States may impose additional tariffs on goods from India.

The Indian government therefore urged the United States to resolve the issue within the framework of ongoing trade negotiations, rather than resorting to unilateral measures.

The war with Iran is increasing economic pressure.

These negotiations are taking place at a time when India is facing pressure from the ongoing conflict between the United States and Iran, which is severely impacting shipping through the Strait of Hormuz.

The crisis has affected not only India's energy security but also its exports to key markets in the Middle East.

Although the government has already implemented some measures to assist exporters. However, many are concerned that a prolonged conflict could hinder India's trade and economic growth this fiscal year.

Analysts warn against rushing to close a deal with the United States.

however Some analysts I think that India may not need to rush to conclude a deal with the United States.

Ajay Srivastava, founder of the Global Trade Research Initiative in New Delhi. specify that The reasons for India's urgency to reach a trade deal with the United States have diminished significantly after the US Supreme Court ruled against Trump's retaliatory tariffs.

He warned that even with a bilateral trade agreement, there is no guarantee that the United States will not implement new trade measures in the future.

"More importantly, the trade agreement does not guarantee that the United States will not take further trade measures in the future. Therefore, India may want to wait for the direction of U.S. trade policy to become clearer and more stable before committing itself to a potentially costly long-term obligation."

Part of Modi's strategy.

For Prime Minister Narendra Modi's government, securing trade agreements with the United States and the United Kingdom is a key part of his strategy to diversify export markets, reduce dependence on existing markets, and attract foreign investment.

This is especially true during a period when the rupee is facing pressure and geopolitical uncertainty around the world is increasing.

Negotiations with both countries will take place this week. It is therefore seen as a crucial test for India in maintaining its trade interests amidst increasingly volatile global economic and political climate.

refer : www.bloomberg.com

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