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Informist, Thursday, Aug. 13, 2026

 

--Govt: Actively engaging with US to resolve outstanding trade issues

--Govt: Working towards early conclusion of bilateral trade pact with US
--Govt: About 45% of India exports to US exempt from additional 10% duty
--Trade secy: Engaged with US regularly on trade deal
--Trade secy: Aim to bring stability in trade relationship via US trade deal

 

NEW DELHI – The government aims to bring stability in the India-US trade relationship through the proposed bilateral trade agreement, Commerce Secretary Rajesh Agrawal said Thursday. The two countries remain committed to securing a mutually beneficial trade agreement at the earliest, he reiterated at a press conference.

 

"India continues to be actively engaged with US authorities to resolve outsnading trade issues while working toward the early conclusion of the India-US Bilateral Trade Agreement," the ministry said.

 

The US is India's largest export destination. India's exports to the US in Apr-Jul totalled $34.49 billion, slightly higher than a year ago. Imports from the US, on the other hand, rose to $22.12 billion from $18.07 billion last year. India and the US had total trade of $132.14 billion in FY26, with India exporting $86.51 billion in goods to the US and importing $45.63 billion from the world's largest economy.

 

Negotiations for the trade pact have seen many ebbs and flows, with the two countries having major differences over opening up India's sensitive agricultural sector to Washington's genetically modified products. The Donald Trump administration's steep reciprocal tariffs and the Section 301 probe against India on the failure to effectively prohibit the import of goods manufactured using forced labour have added to the complexity of finalising a deal.

 

The two countries had on Feb. 7 issued a joint statement agreeing on a framework for an interim agreement for mutually beneficial trade but are yet to finalise the first phase of the trade agreement. 

 

India continues to engage with the US on the additional 10% valorem duty on goods imports from India following New Delhi's failure to entirely prohibit the import of goods produced with forced labour, the commerce ministry said. In July, the Office of the US Trade Representative imposed tariffs on 60 economies that had failed to stop the import of goods produced with forced labour. About 45% of India's exports to the US remain outside the purview of the additional 10% Section 301 duty, the ministry said.

 

According to the White House, a 10% tariff rate is applicable in cases where economies have imposed, partially imposed, or committed to impose measures to prohibit the import of certain goods made using forced labour. India, Canada, and the UK are among the countries in this category. The office determined 10-12.5% rate of duties for certain products from the European Union, Japan, and Switzerland, among other countries. All other economies investigated will face a duty at the rate of 12.5%.  End

 

US$1 = INR 95.44

 

Reported by Pratiksha

Written by Priyasmita Dutta

Edited by Avishek Dutta

 

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