India’s bid for a zero-tariff deal on its labour-intensive exports is at a decisive crossroads as Free Trade Agreement talks with the US near the finish line. At stake is not just market access, but credibility. The clock is ticking, and New Delhi is determined that any trade pact must deliver full tariff elimination on high-employment sectors like garments, footwear, leather, and carpets. Without this, the deal risks being unpalatable back home, where job creation is a top priority.The US, however, appears to be digging in its heels. Washington is unwilling to scrap its high Most-Favoured-Nation tariffs or country-specific duties. Under the current proposals, Indian goods could face a 10% surcharge on top of MFN rates, further eroding the competitiveness of products crucial to India’s manufacturing and export sectors. If that happens, India’s market access gains could be effectively reversed. India has already offered to cut its own MFN tariffs on US imports, raising concerns about an unbalanced deal.
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