Is the Government Engaged in Talks for the India-US Bilateral Trade Deal?
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Synopsis
The ongoing discussions regarding the India-US Bilateral Trade Agreement are crucial for enhancing trade and investment between the two nations. With significant tariffs in place, the government's collaboration with stakeholders seeks to mitigate the impact on various sectors, ensuring stability and growth.
Key Takeaways
- Active discussions on the India-US Bilateral Trade Agreement continue.
- A reciprocal tariff of 25% is in effect on certain exports.
- About 55% of India's exports to the US are affected.
- The government prioritizes the welfare of all industry stakeholders.
- Negotiations began in March 2025, with several rounds completed.
New Delhi, Aug 12 (NationPress) The government continues to be actively engaged in discussions about the India-US Bilateral Trade Agreement (BTA) with Washington. This effort aims to enhance trade and investment by ensuring tariff stability and long-term trade predictability, as stated in Parliament on Tuesday.
A reciprocal tariff of 25 percent has been applied to specific goods exported from India to the US, effective from August 7.
Approximately 55 percent of the total value of India’s merchandise exports to the US is now subject to this reciprocal tariff.
Additionally, starting from August 27, 2025, an extra ad valorem duty of 25 percent will be imposed on select goods exported from India, as indicated by Minister of State for Commerce and Industry Jitin Prasada during a written reply in the Lok Sabha.
He mentioned, “Currently, no additional tariffs have been placed on Indian exports to the USA in areas like pharmaceuticals and electronics.”
According to the minister, various factors, such as product differentiation, demand, quality, and contractual agreements, will influence the effect of reciprocal tariffs on India’s exports, particularly in the textiles sector.
“The government is collaborating with all stakeholders, including exporters and industry representatives, to gather feedback on the impact of the reciprocal tariffs imposed by the USA. The government prioritizes the protection and promotion of the welfare of farmers, workers, entrepreneurs, exporters, MSMEs, and all industry sectors,” he emphasized.
Negotiations for the India-US BTA commenced in March 2025, with five rounds of discussions held, the latest occurring from July 14-18 in Washington, DC.
New Delhi has reiterated that the recent tariff actions taken by US President Donald Trump are “unfair, unjustified, and unreasonable.” “We have made our position clear on these matters, including our imports being guided by market factors and aimed at ensuring the energy security of India’s 1.4 billion citizens,” stated the government.
“It is particularly unfortunate that the US opts to impose additional tariffs on India for actions that several other nations are also undertaking in their national interest,” the statement concluded.
Point of View
It's imperative to recognize the complexity of international trade agreements. The India-US BTA negotiations are pivotal for both economies, especially in light of recent tariff challenges. The government's proactive approach in engaging with stakeholders reflects a commitment to protecting national interests while fostering growth and collaboration.
NationPress
20/08/2025
Frequently Asked Questions
What is the India-US Bilateral Trade Agreement (BTA)?
The India-US Bilateral Trade Agreement (BTA) aims to enhance trade and investment between India and the United States by addressing tariff stability and long-term predictability.
What tariffs have been imposed on Indian exports to the US?
A reciprocal tariff of 25 percent has been imposed on certain goods exported from India to the US since August 7, with additional duties planned for 2025.
How does the government plan to mitigate the impact of tariffs on exports?
The government is collaborating with stakeholders to gather feedback and assess the impact of the tariffs, ensuring the welfare of all affected sectors is prioritized.
When did negotiations for the India-US BTA begin?
Negotiations for the India-US BTA began in March 2025, with multiple rounds of discussions held since then.
What sectors are currently unaffected by the new tariffs?
Currently, no additional tariffs have been imposed on Indian exports to the USA in sectors such as pharmaceuticals and electronics.
