India’s Trade Concessions to U.S. Risk Domestic Economic Stability

India is preparing to dismantle key trade barriers in a lopsided deal with the TRUMP administration, potentially undermining decades of industrial policy. The proposed agreement would eliminate import duties on U.S. pharmaceuticals, auto parts, and steel—sectors where India historically maintained protectionist measures to nurture domestic production.

The concessions come after President Trump’s repeated criticisms of India’s ’outrageous’ trade practices, including his 26% tariff threat on Indian exports last month. While framed as reciprocal, the terms disproportionately favor American exporters at the expense of India’s manufacturing base.

New Delhi’s strategic retreat reflects mounting pressure to preserve access to U.S. markets. But the cost could be severe: analysts warn the policy reversal may destabilize local industries that thrived under tariff protections, with long-term consequences for economic sovereignty.