Guwahati: India’s Chief Economic Adviser V. Anantha Nageswaran expressed optimism on Thursday that the United States may soon withdraw the 25% penal tariffs it imposed on Indian exports, potentially bringing relief to exporters grappling with high duties.
Speaking at an event in New Delhi, Nageswaran said he anticipates a resolution within the next 8 to 10 weeks, with a rollback possibly occurring by November 30.
“I don’t base this on any concrete signal, but considering recent developments, I believe the US will lift the penal tariffs by the end of November,” he said, clarifying that he offered this timeline as his personal assessment, not as an official commitment.
He also suggested that India may lower its reciprocal duties, currently set at 25% to match the US rate, to a range of 10–15% as part of broader efforts to ease trade tensions.
Nageswaran’s remarks come on the heels of a significant diplomatic engagement: a face-to-face meeting in Delhi between Rajesh Agrawal, India’s lead trade negotiator and Special Secretary in the Commerce Ministry, and Brendan Lynch, the US Trade Representative for South and Central Asia.
The meeting marked the first in-person dialogue since Washington imposed the additional tariffs last month, citing India’s ongoing energy trade with Russia.
The dual-layer tariff structure has pushed effective duties on some Indian goods to nearly 50%, severely affecting labour-intensive sectors such as textiles, engineering, and processed foods. Exporters have reported squeezed profit margins and increased uncertainty, prompting urgent calls for policy clarity.
Trade analysts believe that even a partial rollback of these duties could provide critical relief, helping to reduce costs and restore stability in one of India’s most crucial bilateral trade relationships.
While India continues to push for a negotiated settlement, government officials acknowledge that domestic political factors in the US may influence the outcome.
Nageswaran reiterated that India remains hopeful, but is also preparing for multiple possible scenarios.
For now, exporters and industry associations are watching closely to see if the US acts before November-end to ease the tariff burden and whether India follows with a proportionate reduction in retaliatory duties.
Until then, uncertainty continues to cloud a trade corridor worth billions in annual commerce.