India-US trade deal: Industries prepared for trade talks outcome, national interest in focus, says CII President

India-US trade deal: The Confederation of Indian Industry (CII) President Rajiv Memani on Sunday emphasised that the Indian industries are prepared for any outcome which is proposed after the bilateral trade talks between the United States and India.

Memani also said that industries will not pursue deals that are likely to compromise the national interest. The Indian government consulted industry stakeholders before entering trade negotiations with the United States. 

“The Indian government has given considerable time to understand industry concerns, issues and opportunities. Every industry, every size of industry has been consulted to understand how India should be positioned,” reported news agency quoting CII President.

He added that India is not compelled to conclude the trade deal with the US at any cost until the deal is in the interest of both nations.

“There is no doubt that India will only do this deal when it is in India's interest and America's interest. Until it is not in the interest of both countries, this deal will not happen. There is no compulsion in this regard,” Memani said.

The CII President also pointed out that Indian industries will only support the Free Trade Agreement (FTA) if it offers them favourable terms compared to those of the other countries affected by the Trump tariffs.

“The 26% tariff that has been imposed will come down, and industry will get opportunities to operate there. We will remain more competitive compared to other countries,” said Memani.

Who will benefit?

Acknowledging that certain sectors like automotive will face difficulties if the trade deal doesn't provide a suitable outcome, Rajiv Memani highlighted that automakers in Mexico would be the primary beneficiary with the nation's tariffs at a near 0% level, making them the “most competitive.” 

“The maximum alternative replacement will come from Mexico, with some possibility from Vietnam,” he said.

Vietnam has a 20% tariff deal with the US, making it “slightly less competitive” than Mexico compared to India's 26% tariff. The CII chief's assessment cited in the report suggests that the existing trade relationships can harm India's competitiveness.

“Many American companies may also invest in India to export from India. Indian companies will also have to focus on their competitiveness,” he told the news agency, suggesting that the government may need to implement reforms and support measures to help the domestic industries become more competitive in nature. 

India's growth

CII President Rajiv Memani also highlighted that India needs an average nominal GDP growth rate of 10% annually to achieve the Viksit Bharat target by 2047.

“India would require an average about 10 per cent nominal growth to achieve the Viksit Bharat vision,” Memani told PTI.

The nominal GDP of a nation is the total value of goods and services produced in the nation, determined by measuring the current market prices. This nominal GDP data is without adjusting the values for inflation, unlike real GDP data.

Memani was appointed as the President of the Confederation of Indian Industries (CII) on 1 June 2025. He expects both the nation to finalise the trade pact shortly and remove the uncertainties looming over the market due to the negotiations.