Domestic Politics
India's Demand for Zero Tariffs on Labor-Intensive Exports: A Blend of Economic Imperative and Domestic Political Strategy, Says GTRI
Sarfraz Khan
3 minutes read
India is strongly pushing for zero tariffs on labor-intensive exports like garments and footwear in its FTA talks with the US, according to GTRI. This demand is a strategic blend of economic growth (boosting MSMEs, employment) and domestic politics (making the deal "sellable"). The US is reluctant to reciprocate fully, raising concerns of an imbalanced trade agreement.