US weighs lower tariffs for India than Asian rivals as trade talks near finish

The United States is considering India's request for more favorable tariff terms than those granted to competing export economies like Bangladesh and Vietnam, as negotiations on the first tranche of a bilateral trade agreement near completion, according to government officials. US Secretary of State Marco Rubio indicated on October 20 that a deal should provide better rates than current levels, while Indian officials said Washington has shown an accommodative stance. The talks build on a February 2026 framework that set an 18% reciprocal tariff on Indian goods, though subsequent US tariff changes have created uncertainty. India seeks a competitive edge over Asian rivals in labor-intensive sectors such as textiles and footwear, where tariff differences influence buyer sourcing decisions. Commerce Minister Piyush Goyal said October 15 that legal drafting is in final stages, with India set to operationalize the agreement once it secures an advantage over peer economies.