India engaged with the US, studying all the developments: Govt tells Parliament

The government is studying all the developments and remains engaged with the US government, the commerce and industry ministry informed Parliament Tuesday.

India and the US announced a trade deal on February 02, 2026. A Joint Statement for the same was released on February 7 when 25% additional ad valorem tariffs imposed by the US on certain India’s exports citing India’s imports of Russian oil were removed.

Pursuant to US Supreme Court judgement dated February 20 invalidating reciprocal tariffs, the reciprocal tariffs are no longer in force but 10% tariffs on certain products from all countries under section 122 of US Trade Act 1974.


In a separate reply, the government said that overseas investment by India in the US in the last five years (2021-2026) was $15.9 billion. In the last fiscal, it was $4.08 billion and $3.44 billion in 2024-25.

Of the $15.9 billion, financial, insurance and business services comprised $8.6 billion, manufacturing $3.6 billion, community and social services $1.8 billion, and agriculture and mining were $15.8 million.

The ODI outflow on account of liberalized ODI rules is helping Indian entities to enhance their business footprints abroad enabling them to compete in the global market, adding to the strength of Indian economy in long run, the commerce and industry ministry informed Lok Sabha.

PLI impact
The Production Linked Incentive (PLI) schemes have resulted in actual investments of over Rs 2.4 lakh crore, generated over 14.15 lakh jobs until March this year and enabled exports of over Rs 15.2 lakh crore since their inception.
The maximum investment was received in the high efficiency solar PV modules at Rs 64,873 crore, followed by pharma at Rs 45,158 crore, auto at Rs 44,326 crore, speciality steel at Rs 23,896 crore, and large-scale electronics manufacturing sector till March at Rs 20,580 crore.

Startups
As on June 30 this year, 219 operational incubators have been selected under the Startup India Seed Fund Scheme with a total approved funding of Rs 945 crore, of which Rs 650 crore has been disbursed to the incubators.

Pakistan trade
Merchandise exports from Punjab increased to Rs 63,310 crore, from Rs 52,903 crore, representing a growth of nearly 20 % during the period of 2021-22 to 2025-26.

“No study of the estimated economic loss to local traders has been undertaken in the Department of Commerce and no structural feasibility study for reviving trade through the route has been conducted; any question of resumption would be considered within the national-security framework in which the suspension was decided,” the government informed Parliament.

Retail FDI
The cumulative FDI inflow from April 2021 to March 2026 in the single brand retail was $1.52 billion.

The investments have declined to $179.25 million in FY26 from $486.66 million in FY22.

Similarly, the cumulative FDI in multi-brand retail was $34.38 million during April 2021 to March 2026. Investments in the sector have increased to $9.7 million in FY26 from $7.47 million in FY22.