India’s robust economic performance at home is giving New Delhi notable leverage in its ongoing trade negotiations with Washington. According to sources and analysts, despite U.S. tariffs reaching as high as 50%, the decline in Indian exports has been shallower than feared — a fact that empowers India’s negotiators. In October, Indian exports to the U.S. dropped 8.6% year-on-year to $6.3 billion, but this fall was less severe than earlier months.

Rather than rush into a trade agreement, Indian officials appear ready to wait for favorable terms.They expect the U.S. to ease its heavier tariffs — potentially bringing them down to 15% — while India may reciprocate by reducing import duties on much of its goods, though strategically safeguarding sensitive sectors like agriculture.

 To soften the tariff blow, the Indian government is helping exporters diversify into markets such as the U.K., UAE, and Europe, offering tax relief and a $5.1 billion support package. This domestic demand strength is proving to be India’s quiet but powerful negotiating card.