- 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.
