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Informist, Thursday, Aug. 6, 2026

 

MUMBAI – The Parliamentary Standing Committee on Commerce Thursday recommended that the government conclude the proposed Bilateral Trade Agreement with the US at the earliest while ensuring that India's interests are adequately protected. The committee headed by Dola Sen, Rajya Sabha member, presented its 200th report on 'Evaluation of India–US Trade Relations' to both Houses of Parliament.

 

In the report, the committee has evaluated India–US trade relations, identified key challenges arising from US tariff measures affecting various sectors of the economy, and made recommendations to tackle significant concerns within these sectors.

 

Commerce Minister Piyush Goyal last month said the first tranche of the Bilateral Trade Agreement will come into force as soon as Washington ensures New Delhi has comparative advantage over its competitors, suchs as neighbouring countries and the Association of Southeast Asian Nations region. The US last month imposed 10% tariff on imports from India as part of a sweeping trade action targeting 60 countries for failing to effectively prohibit imports of goods produced using forced labour.

 

"The Committee noted with concern that foreign taxes on Indian goods are changing too fast and unpredictably," it said in a press release. "The Committee, therefore, recommends that the proposed Bilateral Trade Agreement without compromising Indian exporters interest should be concluded at the earliest so that businesses in both countries can benefit from a stable and predictable trade environment."

 

To ensure that the India-US trade agreement is effective, the government must negotiate for complete exemption for India's key export products such as generic medicines, critical minerals, and smartphones from any future unexpected US tariff increases, the committee said. Further, the Directorate General of Foreign Trade must set up a special, fast-acting watch desk to track US customs audits in real time, so that Indian exporters can get instant warnings about any new import rules, it added.

 

"The Committee is of the view that the Government may continue its efforts to expand bilateral trade with the United States by addressing market access issues, reducing non-tariff barriers and supporting Indian exporters, particularly MSMEs (micro, small and medium enterprises)," it said. It recommended that to shield vulnerable small-scale industries from volatile tariff actions, the government must actively deploy localised financial buffers and export credit assistance programmes.

 

Further, the government should strengthen cooperation with the US in sectors such as semiconductors, clean energy, critical minerals, and transfer of emerging technologies, it suggested. The government should prepare a long-term strategy to increase India's share in the US market, it added.

 

Despite the 50% tariffs imposed on India for a large part of the financial year 2025-26 (Apr-Mar), India's trade with the US remained robust. The US was India's biggest trade partner in FY26, with total trade of $132.14 billion. India exported goods worth $86.51 billion to the US and imported $45.63 billion worth of goods from the world's largest economy.

 

The committee is of the view that the proposed India–US trade agreement should give a particular focus on reducing tariffs on engineering goods, automobile components, and other products related to the automotive sector. "The Committee feels that the removal of additional US tariffs on Indian exporters will improve India's competitiveness and this will further, provide the necessary predictability for exporters to formulate long-term business strategies," it added.

 

The committee further urged the government to initiate targeted bilateral trade talks with the US to address 48% crash in Indian gems and jewellery exports caused by the 2025 tariff measures. "The Committee is of the view that securing tariff parity with global competitors like Switzerland, Canada and Mexico is absolutely critical in arresting India's market share loss," it said. 

 

It also addressed the need for giving priority to resolve tariff-related issues concerning steel, aluminium, copper, and chemical products under the proposed India–US trade deal. "Moreover, Department should actively engage with the United States to safeguard the interests of domestic industry in relation to Section 232 tariffs and Section 301 investigations while ensuring stable and predictable market access for Indian exporters," it added. Under Section 232 of the US Trade Expansion Act of 1962, the US government can impose tariffs on imports on grounds of national security concerns.  End

 

US$1 = INR 95.22

 

Reported by Pratiksha

Edited by Rajeev Pai

 

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