India is reportedly considering reducing tariffs on over 30 imported items and increasing its purchases of US defense and energy products to prevent higher reciprocal tariffs from the United States, according to a report by Nomura. The report highlights India’s efforts to avoid trade disputes with the US. In its recent Union Budget, the Indian government lowered import duties on various products, including electronics, textiles, and high-end motorcycles. Additionally, India has strengthened diplomatic ties with the US, agreeing to repatriate over 100 illegal Indian immigrants. As part of its trade strategy, India is now evaluating tariff reductions on luxury vehicles, solar cells, and chemicals. “India is considering reducing tariffs on over 30 items and preparing to increase purchases of US defense and energy products,” ANI reported on Tuesday, citing Nomura. Risk of US Retaliation The report warns that if India does not ease tariffs on American goods, the US may impose similar duties on Indian exports. For example, if India continues to levy a 25% tariff on US automobiles, Washington could respond with an equivalent tariff on Indian vehicles. US President Donald Trump, who has previously criticised India's trade policies, has advocated for “reciprocal tariffs” to ensure fair treatment of US exports. The report also notes that India's tariff rates are relatively high compared to other countries, making it susceptible to US retaliatory measures. The US remains India's largest export destination, accounting for approximately 18% of its total exports, which contributed around 2.2% to India's GDP in FY24. India's trade surplus with the US has grown in recent years, reaching nearly $38 billion in 2024. Major Indian exports to the US include industrial machinery, gems and jewelry, pharmaceuticals, fuels, iron and steel, textiles, vehicles, and chemicals. India’s Strategy to Strengthen Economic Ties Trump has previously referred to India as the "tariff king" and has urged India to purchase more American-made security equipment. In discussions with Prime Minister Narendra Modi, he has emphasised the need for a “fair bilateral trading relationship”. To avoid the imposition of higher reciprocal tariffs, India is actively exploring ways to negotiate an agreement with the US. In the medium term, India also aims to strengthen economic relations with Washington and attract more American supply chains to establish operations in the country. Prime Minister Narendra Modi is scheduled to meet with President Trump on Friday in Washington, where discussions on tariffs and trade are expected to take center stage.Original Article