New Delhi: Commerce Secretary Rajesh Agrawal on Tuesday said India is actively engaged in trade discussions with the US, and hopes to conclude the talks
“sooner than later” in a manner that restores deeper market access for domestic exporters. He also said that despite challenges in the US, Indian exporters have maintained their exports in that market.
“We are also very deeply engaged with the United States, which is your biggest market, (and) which is having the maximum tariff as of now. “But we hope sooner than later, this is also something that we will be able to close in a way that will give deeper access in the US also, and we are able to trade that we used to do,” he said. The secretary was addressing exporters in a programme organised by the Federation of Indian Export Organisations (FIEO) here.
Commerce and Industry Minister Piyush Goyal, too, on Monday said that India is at an advanced stage of negotiations for a bilateral trade agreement with the US. US Deputy Trade Representative Rick Switzer was recently here with his team to take stock of these talks. The latest round of two-day talks concluded on December 11.
The India-US trade pact talks are crucial as both countries are working to finalise the first tranche of the Bilateral Trade Agreement (BTA). The talks are also important as the Donald Trump administration has imposed a steep 50 per cent tariff on Indian goods entering American markets. The Indian industry and exporters are eagerly waiting for the conclusion of the negotiations and announcement of a deal, as the high import duties are hurting their shipments to America.
Though they are exploring other markets to maintain their export profits, the US is a key destination for them as it accounts for about 18 per cent of the country’s exports. According to experts, resolution of these tariffs would be key to firming up the first phase of the trade deal. As part of the pact, the US is seeking duty concessions on agri products like almonds, corn and apples, and industrial goods. India has strongly opposed any concessions in the agri and dairy sectors. India has stated that it will not compromise the interests of farmers and MSMEs.
In February, leaders of the two countries directed officials to negotiate an agreement. It was planned to conclude the first tranche of the pact by the fall of 2025. So far, six rounds of negotiations have been held. The agreement aims to more than double bilateral trade to USD 500 billion by 2030, from the current 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.
After recording negative growth for two consecutive months, India’s merchandise exports to the US rose 22.61 per cent to USD 6.98 billion in November despite steep 50 per cent tariffs on domestic goods, according to the commerce ministry data. Imports during the month grew 38.29 per cent to USD 5.25 billion, the data showed.
During the April-November period of this fiscal year, the country’s exports to the US increased 11.38 per cent to USD 59.04 billion, while imports rose 13.49 per cent to USD 35.4 billion. Despite tariff related challenges in the US, Indian exporters in all sectors except some labour intensive segments have been largely maintained their shipments, Agrawal said.
He also said that the global uncertainties at the trade front may impact India’s target to achieve a USD 2 trillion exports target by 2030. “The overall target that India has placed before itself, that we should achieve USD 2 trillion exports by 2030, seems a little bit difficult at this juncture. “But definitely, we should take a leap towards it… even if we do not reach, we will be somewhere near, and we will reach it thereafter,” he said.
Towards this end, the secretary said, the Department of Commerce is also taking steps such as signing free trade agreements with trade partners, including the UK, EFTA, Oman and now New Zealand. The secretary also said that India’s exports of goods and services have touched USD 562 billion during April-November this fiscal year as against USD 529 billion in the same period of last year, despite global challenges.
He added that India is trying to conclude multiple trade pacts with complementary economies such as Mauritius, Australia, the UAE, Oman and News Zealand. Free trade agreements with the UK, Oman and New Zealand are expected to be operationalised in the next 7-8 months, he said, adding that an agreement with the EU will open future opportunities for Indian exporters.
The EU is a USD 20 trillion economy. Talking about steps taken by the ministry to promote exports, Agrawal said that the ministry is engaging with the Indian mission abroad to sensitise them about ways to push shipments. “We will soon come out with detailed guidelines on the export promotion mission,” he said.
