Both Sides Maintain Regular Contact
Key Highlights
- India remains in regular contact with the US on the proposed trade agreement.
- Both sides remain committed to the February framework.
- Tariff changes have led to further negotiations.
- India exported goods worth around USD 87 billion to the US in FY26.
- India wants tariff advantages over competing Asian economies.
- The proposed deal aims to improve trade stability and predictability.
New Delhi, August 13: India remains in regular contact with the United States over negotiations for the proposed bilateral trade agreement, Commerce Secretary Rajesh Agarwal said on Thursday.
Agarwal said both countries remain committed to the framework agreement reached in February, although changes in the US tariff landscape have resulted in further negotiations.
The two countries had finalised the broad contours for the first phase of the proposed bilateral trade agreement in February. Discussions have continued as both sides work through outstanding trade issues.
The Commerce Ministry said India continues to engage actively with US authorities with the aim of resolving pending issues and concluding the first phase of the India-US BTA at the earliest.
Agarwal said a key objective of the trade agreement is to provide greater stability and predictability in the commercial relationship between the two countries, allowing businesses to plan investments and trade more effectively.
The US has imposed an additional 10% duty on Indian goods under a Section 301 investigation related to alleged forced-labour concerns, according to the information provided by the Commerce Secretary.
India is also closely monitoring a US legislative proposal concerning tariffs on countries importing Russian oil. Agarwal declined to comment on the legislation, describing it as an internal US legislative process.
India’s exporters are particularly focused on maintaining competitiveness against countries such as Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia, which compete with Indian products in the US market.
Commerce and Industry Minister Piyush Goyal has previously said the first tranche of the bilateral trade agreement could come into operation once the US ensures that Indian exporters receive a comparative advantage over competing economies.
India exported goods worth around USD 87 billion to the US during 2025-26, making the American market a major destination for Indian merchandise.
The two countries continue to negotiate against a changing global tariff environment, with businesses closely watching the outcome because tariff differences can directly influence the price competitiveness of Indian products in the US market.
The proposed agreement is therefore expected to remain an important component of India’s broader strategy to expand exports, improve market access and provide greater certainty for businesses engaged in bilateral trade.
