US Treasury Signals Potential Tariff Relief for India (Jan 24, 2026)

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Bessent’s Strategic Overture

US Treasury Secretary Scott Bessent indicated possible removal of the additional 25% tariffs imposed on Indian goods, as Russia’s oil imports to India dropped significantly amid bilateral trade recalibrations. This development, announced during Mumbai economic forums, aims to revive stalled US-India trade negotiations targeting a $500 billion bilateral volume by 2030.​

Impact on MSME Exporters

Indian MSMEs in textiles, pharmaceuticals, and auto components—contributing 45% of merchandise exports—stand to gain from restored duty-free access to the $4 trillion US market. Relief could unlock $15 billion in stalled orders, stabilizing 2 million jobs vulnerable to tariff-induced rerouting via Vietnam and Mexico.​

Broader Trade Architecture Shifts

Bessent emphasized India’s pivot from discounted Russian crude (down 20% volumes) toward US LNG and ethane, projecting balanced Current Account Deficit at 1.2% GDP. MSME leaders hail this as validation of Atmanirbhar diversification strategies.​

Strategic Negotiating Leverage

With FTAs under UK, EU, and Australia nearing completion, tariff relief positions India advantageously ahead of Budget 2026’s export credit enhancements worth Rs 50,000 crore.​

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