By Bharat Global Time | July 17, 2025
In a strong show of economic assertiveness, the Prime Minister’s Office (PMO) of India has taken a bold stand in trade negotiations, demanding that Indian exporters receive better tariff treatment than even Indonesia. This comes amid growing concerns over a potential US trade deal with Indonesia, which some feared could undercut Indian exporters — especially in key sectors like textiles, pharmaceuticals, and electronics.
But the PMO isn’t backing down — and it’s making it crystal clear:
“India will not accept second-tier status in global trade.”
What’s the Issue?
The US-Indonesia Comprehensive Economic Agreement, reportedly in its final stages, is set to grant zero or near-zero tariffs to a range of Indonesian goods — from palm oil to electronics. This development triggered alarms in New Delhi over the possibility of Indian exports being sidelined.
However, India has responded with strength, not submission.
India’s Core Demands:
- Lower or equivalent tariffs compared to Indonesia
- Fairer market access for Indian IT, pharma, and auto sectors
- No special preferences for ASEAN at India’s cost
- Assurance that Indian exporters will not be priced out of US markets
🇮🇳 PMO Steps In Directly
According to senior officials, the PMO is personally steering trade dialogues with Washington, signaling the strategic priority of protecting Indian exporters.
“The Prime Minister’s message is clear: India is not anyone’s backup plan,” a top commerce official told BGT News.
This direct intervention is rare, underscoring the political importance of trade parity in a world of shifting alliances and power blocs.
Why This Matters for Indian Exporters
India’s export sectors have already weathered:
- EU carbon tax disruptions
- Middle East shipping delays
- Rising competition from Vietnam and Bangladesh
A US-Indonesia deal granting deeper access without matching terms for India could hit sectors like:
- 🇮🇳 Textiles (already under pressure)
- Pharmaceuticals (India’s top export to the US)
- Electronics and auto parts
But the PMO’s intervention is a confidence boost, showing that the Indian government is proactively guarding its economic interests.
US Reacts Cautiously
So far, the US Trade Representative’s office has issued a non-committal response, stating:
“We value our strategic relationship with India and continue to engage on tariff matters.”
But insiders suggest that India’s strong stand is being taken seriously, especially as Washington balances ties across the Indo-Pacific.
India’s Big Trade Strategy
This move is part of a larger pattern:
- Walking out of RCEP to avoid Chinese trade dominance
- Aggressively signing bilateral FTAs with UAE, Australia, and UK
- Investing in Make in India and PLI schemes to reduce import dependence
India is not just reacting anymore — it’s dictating terms.
Final Word
In a world of economic power games, India just reminded everyone — it’s not afraid to play hardball.
Whether it’s the US, ASEAN, or the EU — India wants respect, not favours.
With the PMO leading the charge, expect India to fight for every inch in global trade, and ensure its businesses aren’t left behind in the age of mega-deals.
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