India has made it clear that it wants a preferential tariff advantage for Indian exporters before finalizing the proposed bilateral trade agreement with the United States. Commerce and Industry Minister Piyush Goyal said India would seek terms that give its exporters an advantage over competitors such as Vietnam, Bangladesh and Indonesia.

The development is significant for India's non-tyre rubber industry, which includes thousands of MSMEs producing industrial hoses, belts, seals, gaskets, moulded components, footwear products and other rubber goods for international markets.

For smaller exporters, tariff differences can directly influence competitiveness because customers often compare suppliers across several Asian manufacturing countries. A favourable trade agreement could therefore help Indian manufacturers secure larger orders in the US market.

Goyal has also indicated that India's expanding network of FTAs with the UK, UAE, Australia, New Zealand and the EU is expected to provide preferential access to a substantial portion of global trade.

For rubber MSMEs, however, tariff concessions will need to be accompanied by improvements in logistics, standards compliance, financing and market development support. The coming months will therefore be closely watched by exporters across the rubber products value chain.