India should reconsider talks for trade pact with U.S., offer limited zero-to-zero tariff deal: GTRI

GTRI warns against a comprehensive FTA with the US, suggesting zero-for-zero deal on industrial goods and partnerships with China.

India should reconsider negotiating a comprehensive free trade agreement (FTA) with the U.S. as it could pose challenges to domestic sectors like agriculture, automobiles and pharmaceuticals, think tank GTRI said on Thursday (April 10, 2025).

Trump’s global tariffs updates, April 10, 2025 

It cautioned that under trade pact with the U.S., many of Washington’s demands such as weakening India’s minimum price support system for farmers, allowing genetically modified food imports, lowering agricultural tariffs, changing patent laws to extend drug monopolies, and letting American e-commerce giants sell directly to consumers pose major risks.

The risks include harm to farmer incomes, food security, biodiversity, public health, and the survival of small retailers, the Global Trade Research Initiative (GTRI) said.

“Reducing tariffs on farm goods could affect the livelihoods of hundreds of millions, while slashing duties on cars could undercut a sector that accounts for nearly a third of India’s manufacturing output. The collapse of Australia’s car industry after deep tariff cuts in the 1990s offers a cautionary example,” it added.

The remarks came in the backdrop of the U.S.’s decision to defer imposition of additional 26% import duty on India for 90 days. The 10% baseline tariffs are there from April 5 on domestic goods entering the American market.

“Avoid a comprehensive FTA with the U.S. as it would force India to make damaging concessions. It’s a deal that would cost India more than it gains.