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Backing India's trade talks to soften US tariff impact

Published July 25, 2026 at 10:32 AM UTC

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The Indian government's strategy of engaging the US through trade talks is a sensible and pragmatic response to the new tariffs. By opening negotiations, India aims to protect its competitive advantage in labour-intensive sectors like textiles and its vital pharmaceutical exports. The pharma industry, which supplies affordable medicines to American patients, has a strong case for exemption: higher tariffs would increase US healthcare costs and disrupt supply chains. Diplomatic engagement also buys time for Indian firms to adjust compliance with forced labour rules, avoiding immediate disruption. Furthermore, a negotiated deal could strengthen bilateral ties and set a precedent for future trade disputes. Industry leaders and trade experts support this approach, noting that confrontation would harm both economies. The talks, while uncertain, represent the best chance to safeguard Indian jobs and maintain market share in a volatile global trade environment.