US likely to push for tariff cuts, regulatory changes in trade deal with India: GTRI

The United States is expected to seek significant changes in India’s trade policies, including reductions in tariffs and regulatory reforms, as part of the ongoing bilateral trade negotiations, according to the Global Trade Research Initiative (GTRI) as quoted by news agency PTI.

In the agriculture sector , GTRI noted that US demands include curbing India’s minimum support price (MSP) programs for staple crops such as rice and wheat, removing import barriers on genetically modified (GM) products, and cutting tariffs on farm goods.

The dairy sector is also a key point of contention. The US contends that India’s requirements for GM-free feed certification and facility registration serve as a de facto ban on American dairy imports . Indian regulations currently prohibit imports from animals fed with animal-derived feed, such as butter from cows fed meat, due to cultural and religious considerations.

“India considers this policy non-negotiable,” said GTRI Founder Ajay Srivastava.

Additionally, the US is likely to push for easing restrictions on American retail giants such as Amazon and Walmart, which face challenges under India's rules against foreign-owned inventory-based e-commerce models.

“India resists the easing as it has to protect its small domestic retailers from unfair competition from deep-pocketed foreign firms,” Srivastava noted. “It also views these restrictions as part of preserving regulatory autonomy in a fast-evolving sector.”

The US has also raised concerns over India’s complex licensing processes for importing remanufactured and second-hand capital goods, describing them as expensive and time-consuming. These include requirements for technical certification, import quantity limits, and a mandatory guarantee of at least five years of residual product life.

“India maintains that differentiating between new and remanufactured products is crucial to prevent dumping of obsolete technologies and to protect local manufacturing,” Srivastava said. He added, “as negotiations proceed, Washington will continue pressing for wide-ranging reforms in tariffs, standards, digital rules, and services access.”