India is actively engaged in trade discussions with the United States and hopes to conclude the negotiations “sooner than later” in a manner that restores deeper market access for domestic exporters, Commerce Secretary Rajesh Agrawal said on Tuesday.
Addressing exporters at a programme organised by the Federation of Indian Export Organisations (FIEO), Agrawal said that despite significant tariff-related challenges in the US market, Indian exporters have largely managed to maintain their shipments.
“We are very deeply engaged with the United States, which is your biggest market and which currently has the maximum tariff burden,” he said. “But we hope that sooner than later, this can be closed in a way that gives deeper access to the US market and enables us to trade at the levels we used to.”
His remarks come amid ongoing negotiations between the two countries for a Bilateral Trade Agreement (BTA). Commerce and Industry Minister Piyush Goyal had earlier said that India is at an advanced stage of negotiations for a trade pact with the US. US Deputy Trade Representative Rick Switzer recently visited India with his team to review progress, with the latest two-day round of talks concluding on December 11.
Focus on first tranche of BTA
The India-US trade talks are seen as critical as both sides work to finalise the first tranche of the BTA. The negotiations have gained urgency following the imposition of steep 50 per cent tariffs by the Donald Trump administration on Indian goods entering the US market.
Indian exporters are keenly awaiting a breakthrough, as the elevated duties have adversely impacted shipments to America, which accounts for around 18 per cent of India’s total exports. While exporters are exploring alternative markets to protect margins, the US remains a key destination.
Experts note that resolving tariff issues will be central to firming up the initial phase of the agreement. As part of the talks, the US has sought duty concessions on agricultural products such as almonds, corn and apples, as well as certain industrial goods. India, however, has strongly opposed concessions in agriculture and dairy, reiterating that it will not compromise the interests of farmers and MSMEs.
In February, leaders of both countries directed officials to negotiate a trade agreement, with the first tranche initially targeted for completion by the fall of 2025. So far, six rounds of negotiations have been held. The pact aims to more than double bilateral trade to USD 500 billion by 2030 from the current level of about USD 191 billion.
The US remained India’s largest trading partner for the fourth consecutive year in 2024–25, with bilateral trade valued at USD 131.84 billion, including USD 86.5 billion in exports.
Exports hold up despite tariffs
Despite the high tariffs, India’s merchandise exports to the US rose 22.61 per cent year-on-year to USD 6.98 billion in November, reversing two consecutive months of decline, according to commerce ministry data. Imports from the US during the month increased 38.29 per cent to USD 5.25 billion.
During April–November of the current fiscal year, exports to the US grew 11.38 per cent to USD 59.04 billion, while imports rose 13.49 per cent to USD 35.4 billion.
“Except for some labour-intensive segments, exporters across sectors have largely maintained their shipments despite tariff-related challenges in the US,” Agrawal said.
However, he cautioned that global trade uncertainties could make India’s ambitious USD 2 trillion export target by 2030 harder to achieve. “At this juncture, it seems a little difficult, but even if we do not fully reach it, we will be somewhere near and achieve it thereafter,” he added.
Free trade push continues
To support export growth, the Department of Commerce is accelerating efforts to conclude free trade agreements (FTAs) with key partners. Agrawal said India is working towards operationalising trade pacts with the UK, EFTA, Oman and New Zealand within the next seven to eight months.
India is also pursuing agreements with complementary economies such as Mauritius, Australia, the UAE and Oman, while an eventual pact with the European Union—a USD 20 trillion economy—could unlock significant opportunities for Indian exporters.
Despite global headwinds, India’s exports of goods and services touched USD 562 billion during April–November of the current fiscal year, up from USD 529 billion in the same period last year.
Agrawal added that the ministry is engaging closely with Indian missions abroad to strengthen export promotion efforts. “We will soon come out with detailed guidelines on the export promotion mission,” he said.
