• India is prepared to offer the US the “forward most favoured nation” clause as sweetener in trade talks.
• India seeks to be ‘major supplier’ to US in areas vacated by China.
• India hopes for quick deal with US on trade, with concessions on 90% of tariff lines.
• India has made pre-emptive concessions, seeks to avoid Trump’s 26% reciprocal tariff.

A “Most Favored Nation”
(MFN) clause, also known as a “Most Favored Customer” or “Prudent Buyer”
clause, is a contractual term that guarantees a buyer or licensee
receives the same or better terms as any other buyer or licensee. Essentially,
it prevents a seller or licensor from offering better terms to another
party without also extending those terms to the party with the MFN
clause.

As a reminder, US Treasury Secretary Bessent said that the first trade deal to be announced might be with India. The markets are just waiting for the details.

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