India and the US are persevering with with negotiations for the bilateral commerce settlement, with officers in New Delhi noting that it’s nonetheless too early to evaluate the affect of the proposed reciprocal tariffs that US President Donald Trump has mentioned will come into impact from August 1.
“Aside from the tariffs on China, there are solely bulletins of the US intent to levy reciprocal tariffs on international locations. They haven’t come into impact, and the relative place for Indian exports has not modified as of now,” famous official sources, including that the affect of those will likely be assessed as and once they play out.
As of now, there’s a 10% baseline tariff by the US on nearly all international locations, whereas its tariff on Chinese language items is at about 55%. The US has additionally levied sector-specific tariffs on objects together with auto parts, metal, and aluminium.
“Latest US commerce information exhibits that the import discount is basically in these sectors and largely for items from China. General, tariff collections by the US have elevated, however imports haven’t decreased for now,” officers famous.
However with considerations over the potential affect of the US tariffs on Indian exports, the Division of Commerce is planning to start out a world commerce watch from subsequent month that can monitor what is occurring the world over and the way India ought to strategise with regard to its imports.
“India continues to do effectively in exports, so authorities insurance policies are having an affect, which has helped construct resiliency in exports and led to assured export markets,” sources famous.
As per provisional information, India’s merchandise exports remained nearly flat at $ 35.14 billion in June 2025 from $ 35.16 billion in June 2024, whereas imports decreased to $53.92 billion in June 2025 from $ 56 billion in June final yr.
Nonetheless, the cumulative exports (merchandise and providers) throughout April-June 2025 grew by 5.94% to an estimated $ 210.31 billion, as in comparison with $ 198.52 billion in April-June 2024.
Officers additionally clarified that regardless of bulletins by the US on levying a further 10% tariff on BRICS international locations and separate tariffs on these international locations coping with Russia, negotiations for the India-US commerce deal proceed as per the phrases of reference that was determined earlier.
“The negotiations are in progress as per the choice of the leaders and the phrases of reference determined,” they mentioned, including that the BTA is being negotiated as per the timeline determined in February of the primary tranche being accomplished.
Expectations nevertheless proceed {that a} restricted deal could also be signed earlier than the tip of the month. A workforce of official from India are at the moment within the US and one other spherical of negotiations to clinch the deal are set to start out from Wednesday.
Chief negotiator of India and particular secretary within the Division of Commerce, Rajesh Agrawal, will be a part of the workforce on Wednesday. The four-day talks begin on Monday and can finish on Thursday.
Different commerce offers
In the meantime, India can also be pushing forward with commerce offers with different international locations. Whereas the second spherical of negotiations for the India-New Zealand free commerce settlement is at the moment underway in New Delhi, the twelfth spherical of talks on the India-European Union FTA concluded final week in Brussels. The subsequent spherical of discussions is scheduled for the primary week of September, when a delegation from the EU will go to India.
“We now have exchanged our provides on providers and non-services… There have been discussions on that. We additionally mentioned key pursuits in market entry associated to items as effectively… The subsequent spherical of talks will likely be held within the first week of September,” mentioned L Satya Srinivas, Particular Secretary within the Division of Commerce.
India can also be engaged on the FTA evaluate with ASEAN nations, the place 9 rounds of talks have already taken place. The tenth spherical of talks is scheduled for August in New Delhi. Whereas there was some progress in areas like customs, commerce facilitation, and technical cooperation, extra discussions are wanted.
