India prepared to ‘future-proof’ trade deal as sweetener in US talks: report

NEW DELHI: New Delhi is prepared to include a sweetener in trade talks with Washington that would “future-proof” a deal by ensuring no other trade partners could have superior terms, as it pushes for a quick agreement with the Trump administration, Indian government officials said.

The ‘forward most-favoured-nation’ clause, rarely granted by India in previous trade negotiations, would automatically apply to the US any more-favourable tariff arrangements that might be agreed with other countries, two officials with direct knowledge of the matter told Reuters. “This clause, in a sense, future-proofs the US deal and is the only way to do so,” one of the officials said.

The officials declined to be identified because of the private and sensitive nature of the negotiations. India’s trade ministry, which is leading talks, did not respond to an e-mailed request for comment.

India has already made a number of offers and pre-emptive concessions to the US on trade, showing itself more eager than several other big US trading partners including China, Canada and the European Union (EU).

US Treasury Secretary Scott Bessent said on Monday that India could be one of the first to sign a trade deal with the US, possibly as soon as this week or next, although he gave no further details. Statements from the Trump administration have said the two sides already agreed on a roadmap for trade discussions. India would be keen to avoid or at least lighten President Donald Trump’s proposed 26 per cent reciprocal tariff and other restrictions on India, said Ajay Srivastava, founder of Global Trade Research Initiative, a Delhi-based trade policy think tank, and a former trade negotiator.

Trump’s team has said it wants to sign deals with India and other trading partners before a 90-day pause on the proposed reciprocal tariffs lapses in July, although some analysts and former officials say it will face steep challenges.