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India open to lower tariffs for U.S. firms, sources say

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India expects better trade terms in return -sources

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Trade deal could be possible under Trump -former diplomat

By Shivangi Acharya and Krishn Kaushik

NEW DELHI, Nov 7 (Reuters) - India is open to offering

easier market access for U.S. firms if Washington reciprocates

under President-elect Donald Trump, who has long called out New

Delhi for its high tariffs, sources aware of the matter said.

Trump, who made a stunning political comeback four years

after being voted out of the White House, recently labelled

India a "very big abuser" of trade ties, vowing to raise tariffs

on all imports by the United States during his campaign.

During his first term as president from 2017 to 2021, Trump

warred with the South Asian nation over tariffs but shared a

healthy relationship with Prime Minister Narendra Modi.

Closer to the end of his time in the White House, India and

the United States agreed to negotiate a limited accord, in an

effort to bridge their differences.

"India is open to lowering tariffs for entry of U.S.

companies if that means better trade terms for Indian goods,"

said one of the sources aware of the government's thinking, who

spoke on condition of anonymity.

The South Asian nation could lower import tariffs in sectors

such as automobiles, the source added.

"We had a fairly good convergence during his first term in

office," said Harsh Vardhan Shringla, who was India's ambassador

to Washington during Trump's first term.

"I think his second term will be even better because the two

sides have developed a certain amount of mutual understanding

and respect, especially at the level of the leaders."

India had almost concluded a mini trade deal during Trump's

first term but for the COVID-19 pandemic, the retired diplomat

added. "So, there is a scope to conclude a free trade agreement

under Trump II."

New Delhi is not too worried about the fate of its trade

ties with Washington in Trump's coming term, the sources said,

with China largely front and centre for his tariff threats.

Trump's approach to trade matters is transactional, which

New Delhi believes helps in talks, another source, who is a

senior government official, said days before Trump won the

election.

India's external affairs and trade ministries did not

immediately reply to mails seeking comment.

STEADY PROGRESS

Modi, who flaunts warm ties with Trump, was of one the first

world leaders to speak to him by telephone after his historic

win. Despite criticising India on trade, Trump called Modi

"fantastic" during his campaign.

The Indian leader also had good relations with Democratic

presidents such as Barack Obama and Joe Biden.

The White House rolled out the red carpet for him last year,

touting deals on defence and commerce as Washington increasingly

views New Delhi as a counterweight to China's growing regional

influence.

Regardless of who occupies the White House, trade ties

between the two nations have grown steadily over the last

decade.

The United States is India's top export destination, with

goods and services exports of $120 billion in 2023.

(Additional reporting by Aftab Ahmed in New Delhi; Editing by

Clarence Fernandez)