As the July 9 deadline for Donald Trump’s proposed 26 percent tariffs nears, the Confederation of Indian Industry (CII) president Rajiv Memani has said that Indian industry is prepared for any outcome from the ongoing trade negotiations with the United States.
Memani emphasised that the Indian government had undertaken wide consultations with industry stakeholders before entering into the talks. "The government has spent considerable time understanding industry concerns, challenges and opportunities. Businesses of all sizes have been consulted to decide how India should be positioned," he said.
He stressed that India would not pursue any agreement that undermines its national interest. “India will only enter into a trade deal if it is in the interest of both India and the United States. There is no compulsion to conclude a deal unless it meets this standard,” Memani stated.
The CII chief also said that Indian industry would only support a Free Trade Agreement (FTA) if the terms are at least as favourable as those offered to other countries affected by the Trump tariffs.
“The 26 percent tariff is likely to come down, and Indian industry will get more opportunities to operate in the US. This will help make us more competitive compared to other countries,” Memani noted.
Memani expressed optimism that the trade talks would conclude soon, helping lift the uncertainty currently weighing on markets.
He acknowledged that sectors such as automotive could face difficulties if a favourable outcome is not achieved. In such a scenario, Mexico, with its near-zero tariffs, stands to benefit the most. “The maximum alternative sourcing will come from Mexico, with some possibility from Vietnam,” he said. Vietnam currently has a 20 per cent tariff deal with the US, which makes it slightly less competitive than Mexico.
Memani added that the evolving trade dynamics could also trigger fresh US investments in India, particularly for export-oriented production. “American companies may invest in India to export from here. Indian firms too must focus on improving their competitiveness,” he said, suggesting that reforms and policy support may be required to strengthen domestic industry.
