India's first phase of a proposed trade agreement with the United States was reported to be in the final stages of legal drafting on 15 October. India's Commerce Minister Piyush Goyal indicated that the country would seek a competitive advantage for its exporters before finalizing and operationalizing the agreement. New Delhi is particularly concerned that Indian businesses should not face less favorable tariff conditions than competitors such as Bangladesh, Vietnam and Indonesia.

The development is relevant to Indian manufacturers of non-tyre rubber products that supply industrial equipment makers, automotive component companies, infrastructure contractors and other US customers. Potentially affected product categories include rubber hoses, seals, gaskets, conveyor belts, industrial rollers, vibration-isolation components and custom-moulded products. However, the final tariff treatment for individual products cannot be established until the agreement's detailed terms are confirmed.

The Indian goods exports to the US reached USD 42.79 billion between April and August, compared with USD 40.39 billion in the corresponding period a year earlier. For MSME manufacturers, predictable tariffs and stable market access could improve quotation accuracy and support longer-term supply agreements. The practical benefit, however, will depend on the final agreement and the product-specific provisions it contains.