India rise FTA talks with Qatar, EU as US tariff stems

Copyright © HT Digital Streams Limit all rights reserved. The government is expected to finalize the terms of reference for a free trade agreement with Qatar in early October. Summary Qatar, which has emerged as an important export destination for Indian engineering goods, petrochemicals and agricultural products, is seen as an important partner in the effort by New -Delhi to reduce US dependence – the largest export market of India. New -delhi: India is aimed at deepening trade ties with the Middle East and Europe, as it results in efforts to diversify its export markets amid tense relations with the US after President Donald Trump imposed a hefty 50% import tariff on the country. The government is expected to finalize the reference conditions (TOR) for a free trade agreement (FTA) with Qatar early next month, which can be followed by the Minister of Trade and Industry, Piyush Goyal, who visited Doha in the first week of October, a senior government said on Monday on the sidelines of an event in New Delhi. Qatar, which has emerged as an important export destination for Indian engineering goods, petrochemicals and agricultural products, is seen as an important partner in the effort by New Delhi to reduce the dependence on the US largest export market. India’s exports to the US, its largest buyer of engineering goods, have already received a hit after Washington imposed a 50% tariff from August 27, according to a move exporters who, according to FY26, could cost nearly $ 7.5 billion and put the MSME -dominated groups under severe tensions. Cathar trade is almost one -sided, as India imported goods worth $ 12.46 billion in FY25 against exports of only $ 1.69 billion. The pattern was similar in FY24, with $ 12.34 billion imports and exports at $ 1.7 billion, reflecting a sharp imbalance largely powered by India’s dependence on energy supplies from Qatar. EU discussions are getting momentum the government is at the same time promoting negotiations with Europe, with the 13th round of India-EU FTA talks currently underway in New Delhi. According to the senior government official, Goyal is scheduled to meet EU trade commissioner Maroš šefčovič on September 12 to iron out differences on sensitive issues such as spirits, dairy and cars. Both sides have expressed optimism that the agreement, which has been in the works for more than a decade, can be concluded soon, the official said on condition of anonymity. While New -Delhi is practicing new partnerships, New -Delhi reiterated that core interests in sensitive sectors such as agriculture, fisheries, dairy and MSMEs will be protected in all trade conversations. “India is committed to fair, balanced and reciprocal trade, but we will not be compromised on areas that affect the livelihood at home,” the official cited above. The government’s outreach to Qatar and the EU comes against the background of stationary discussions with Washington, where the sixth round of the proposed bilateral trade agreement remains. Although both sides have indicated the readiness to tackle, there is no clarity on when negotiations can resume. Exporters fear that prolonged rates of years of market access gains in the US, India’s largest destination for engineering exports, could eradicate, which was worth $ 19.16 billion in FY25. The imbalance of trading under Spotlight India’s most important imports from Qatar is dominated by energy supplies, mainly liquid natural gas (LNG), crude oil, liquid petroleum gas (LPG) and petrochemicals. There are also smaller imports of fertilizers, aluminum and certain chemicals. India’s export to Qatar mainly includes rice, meat, seafood, iron and steel products, machinery, textiles, plastic items and chemicals. Over the past few years there has also been a growing part of engineering goods, electronic items and consumer products. The US is not only India’s largest trading partner, but also one of the few major economies with which India enjoys a significant trade surplus. The surplus of India’s goods with the US rose to $ 41.18 billion in FY25, by 16.6% higher than $ 35.33 billion a year ago. The increase was powered by an 11.6% increase in exports to $ 86.51 billion, while US imports grew by 7.4% to $ 45.33 billion. In comparison, India’s total goods trade reported a $ 282.8 billion deficit in FY25. According to a Global Trade Research Initiative (GTRI) report, India could drop its exports to the US to $ 49.6 billion due to new rates. Rates are expected to seriously affect the labor -intensive sectors of India, with exports in areas such as textiles, jewelery and jewelry, and shrimp that may face a 70% reduction, leading to significant job losses and challenges for India’s role in global supply chains, the report highlighted. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #india #Free -Trade Agreement #Europe #Trade #Trade War #Free Trade Read Next Story