India is closely monitoring trade talks with U.S., says FM Nirmala Sitharaman as reciprocal tariff deadline looms

As the April 2 deadline for reciprocal tariffs approaches, Union Finance Minister Nirmala Sitharaman on Thursday said that India is closely monitoring ongoing trade talks with the U.S.

"Commerce Minister Piyush Goyal has travelled to the U.S. to initiate discussions. He is working to protect the interests of exporters. We will have to see how the Commerce Ministry negotiates with the U.S. to ensure that our interests are well represented," she said at the launch of the book The Glimpses of World History in Visakhapatnam, Andhra Pradesh.

The Finance Minister's remarks come as Commerce Minister Piyush Goyal visits the U.S. in pursuit of a potential India-U.S. trade agreement. She stated that India has conveyed its exporters' concerns and that negotiations are underway on multiple fronts to safeguard their interests. Notably, the Trump administration is set to impose its first round of reciprocal tariffs on April 2, targeting most of its trading partners, including India.

Goyal’s visit to the U.S. began on March 3, 2025, and is expected to conclude by March 8, 2025. Experts suggest that India's strategy in these bilateral discussions is to secure a broader trade and investment agreement with the U.S. while offering tariff reductions on certain products such as pork, high-end medical devices, and luxury motorcycles. Additionally, India may extend significant concessions, including production-linked incentives for the shipping sector and support for logistics companies. To address U.S. concerns over the trade deficit, India could also agree to increase imports of defense equipment, aircraft, oil & gas, technology, and medical & diagnostic equipment, according to a recent note by equity research firm Nomura.

At a separate press conference in Visakhapatnam, Sitharaman addressed questions regarding the dual Goods and Services Tax (GST) system and its implications for ease of doing business. She also outlined specific budgetary support measures and initiatives aimed at the state's development. Furthermore, she reiterated the government's commitment to protecting India’s export interests, particularly in light of ongoing tariff negotiations with the U.S.

During the conference, Revenue Secretary Ajay Seth responded to a question about the long-term capital gains tax and its impact on foreign institutional investors (FIIs), as well as recent capital outflows from Indian markets. He asserted that the Indian economy is performing better than many global counterparts.

"Stock markets fluctuate due to various factors, including global market trends and interest rates. The recent market movements are more influenced by global conditions than domestic issues. Over the past three years, excluding the COVID-19 period, the Indian economy has grown at an average rate of 7.8%, with this year’s growth projected to be around 6.5%," Seth said.

On tax rates, he stated that the Government of India maintains uniformity across asset classes.

"Whether it is equity or debt, the applicable tax rate could be 10%, 20%, or 30%, depending on the income level. For instance, individuals with an income below ₹12 lakh may not be liable to pay any tax, while those earning ₹30 lakh or more would fall under the 30% tax bracket. The objective is to ensure consistency in tax treatment without granting preferential treatment to specific asset classes," he explained.