News India Times

www.newsindiatimes.com – that’s all you need to know Resilient Domestic Economy Gives India Space To Negotiate U.S. Trade Deal, Sources Say I ndia’s strong domestic economy and a smaller-than-expected hit to exports are giving New Delhi more room to negotiate a trade deal with Washington, which has imposed tariffs as high as 50% on imports from the country, Indian sources and analysts said. Indian exports to the U.S. dropped 8.6% year-on-year to $6.3 billion in October, the second month that the 50% tariff on imports from the country was in place. The decline was lesser than the 12% drop in September. Negotiations between New Delhi andWashington have dragged on even as other Asian countries like Japan and South Korea have struck deals to bring down tariffs. Indian officials have publicly maintained that India will not rush to sign a deal. “For now, we’ve avoided the worst im- pact of the 50% U.S. tariffs,” said a senior government official aware of the talks, de- clining to be identified as the person was not authorized to speak to the media. While some sectors such as textiles have reported a fall in U.S. orders, the official said, the broader economic impact of the tariffs has been limited, allowing negotiators space to reach a deal. “If needed, we are ready to wait,” the official said. The official, and others aware of the trade talks, said they expectWashington to roll back the 25% tariff linked to Rus- sian oil purchases, and eventually move toward a 15% overall rate, with New Delhi prepared to cut its own import tariffs on over 80% of goods while protecting sensi- tive sectors like agriculture. The commerce ministry did not im- mediately respond to an emailed request for comment. U.S. officials did not im- mediately comment although President Donald Trump said last weekWashington was close to reaching a deal with India that would expand economic and security ties. The government is helping exporters diversify into new markets through recent new trade deals with the U.K., UAE and Australia, tax cuts on raw materials and a $5.1 billion support package to boost exports, officials said. Many exporters have cushioned the fall in exports to the U.S. since September by diversifying into African and European markets and retaining U.S. clients with discounts and longer delivery timelines, five exporters and industry associations said. Apparel and footwear firms are absorb- ing costs up to 20% to retain U.S. buyers, said Ajay Sahai, director general of the Federation of Indian Export Organisa- tions. The government and the central bank have announced targeted relief, includ- ing short-term loan moratoriums, but avoided large fiscal easing. Domestic tax cuts on hundreds of con- sumer items since September are boost- ing local demand and helping exporters stay competitive, trade associations and officials say. Also, tax cuts on inputs like man-made fibres have aided textile exporters, said N Thirukkumaran, general secretary of the Tirupur Exporters’ Association. Exporters are offering 10–20% dis- counts on garments depending on style and shipment size, he said. India’s economy grew an annual 7% in the July-September quarter and is expected to expand 6.8% in the financial year, according to the central bank. CHINA COMPETITION INTENSIFIES However, exporters said that pressure from over-capacity in China is proving to be tough to manage, with cheaper Chinese goods flooding a number of the markets they compete in. “Chinese businesses are well-en- trenched and their domestic situation has made them highly competitive,” said Rahul Tikoo, CEO of Optime, a Mumbai- based speciality chemical maker. India’s goods exports to non-U.S. mar- kets fell 12.5% year-on-year in October, a sharper drop than to the U.S, led by weaker engineering, petroleum and jewel- lery shipments. “This may reflect heightened compe- tition in non-U.S. markets as countries diversify exports post tariff announce- ments,” HSBC chief India economist Pranjul Bhandari said. -Reuters By Manoj Kumar, Ashwin Manikandan PHOTO:REUTERS/ADNAN ABIDI/FILE PHOTO PHOTO:REUTERS/SAHIBA CHAWDHARY/FILE PHOTO Workers stitch dresses at a garment manufacturing unit in Noida, India, August 27, 2025. A worker plucks fresh tea leaves at the Chota Tingrai estate in Tinsukia, Assam, India, July 23, 2025. US Clears $93 Million Sale Of Javelin Anti-Tank System, Excalibur Projectiles To India T he U.S. State Department has approved the sale of Javelin anti-tank missile system and Excalibur guided artillery munitions worth $93 million to India, the U.S. Defense Security Cooperation Agency (DSCA) said onWednesday (No- vember 19, 2025). The purchase of U.S. defense equipment is India’s first underWashington’s foreign military sales program since ties soured in August after President Donald Trump doubled tariffs on Indian goods to 50% as pun- ishment for New Delhi’s purchases of Russian oil. It follows a re-order this month of fighter jet engines made by General Electric to power more of India’s home-produced Tejas combat aircraft. “This proposed sale will support the foreign policy and national security objectives of the United States by helping to strengthen the U.S.-Indian strategic relationship and to improve the security of a major defense partner which continues to be an important force for political stability, peace, and economic prog- ress in the Indo-Pacific and South Asia regions,” the DSCA said in a statement. The Indian government had requested to buy up to 216 Excalibur tactical projectiles and 100 units of the Javelin system, the DSCA said. India already uses the Excalibur artillery ammunition in its M-777 Howitzer guns. The principal contractors for the sales will be RTX Corp for the Excalibur projectiles and its joint venture with Lockheed Martin for the Javelin systems, the DSCA said. -Reuters PHOTOS:Surati for Performing Arts Raytheon’s Excalibur Projectile and other Raytheon munitions are displayed during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. News India Times (November 22, 2025 - November 28, 2025) November 28, 2025 6 US-India