India engaged with US for negotiating trade pact, govt tells Rajya Sabha

New Delhi: The government is studying all the developments and remains engaged with the US in the framework of negotiating a bilateral trade agreement (BTA), Parliament was informed on Friday.

In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that the government remains in continuous consultation with relevant stakeholders, including farmers, agricultural exporters, industry bodies, ministries/ departments and export promotion councils on issues related to import tariffs imposed by the US.

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The government has also taken into account inputs received from states on issues related to import tariffs imposed by the US, with a view to safeguarding India's trade interests, he said.

The India-US BTA negotiations were launched following the meeting of leaders from both sides in February 2025, where the two countries adopted the "Mission 500" objective of expanding bilateral trade to USD 500 billion by 2030.

Negotiations continued through multiple rounds, and the two countries announced a framework for an interim trade deal on February 2, 2026.

Following the US Supreme Court judgement dated February 20, 2026, invalidating reciprocal tariffs, the reciprocal tariffs are no longer in force.

However, the US government has issued Executive Orders imposing 10 per cent tariffs on certain products from all countries under section 122 of the US Trade Act 197.

"The government is studying all the developments and remains engaged with the US government in the framework of negotiations for a BTA which includes recent meetings of negotiating team of both sides in Washington, DC (20-22 April), New Delhi (1-4 June), and the recent visit of the US Trade Representative to New Delhi (22-24 June)," Prasada said.

Replying to another question, the minister said following the implementation of India-SAFTA (South Asia Free Trade Agreement), India's exports to SAFTA increased from about USD 5.5 billion in 2005-06 (pre-FTA year) to USD 25.8 billion in 2025-26.

Major export destinations include Bangladesh, wherein exports increased from USD 1.7 billion in 2005-06 to nearly USD 10.6 billion in 2025-26 (41.1 per cent share of SAFTA exports); Nepal, from USD 0.9 billion in 2005-06 to USD 7.4 billion in 2025-26 (28.9 per cent share); and Sri Lanka, from USD 2 billion in 2005-06 to USD 5.5 billion in 2025-26 (21.4 per cent share).

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He also said ASEAN continues to be one of India's most important FTA blocs. This pact came into force in January 2010.

India's exports to ASEAN increased from about USD 18.1 billion in 2009-10 (pre-FTA year) to USD 38.4 billion in 2025-26, more than doubling over the period.

Major markets include Singapore, wherein exports increased from USD 7.6 billion in 2009-10 to nearly USD 11.9 billion in 2025-26 (30.9 per cent share of ASEAN exports); Malaysia, where exports increased from USD 2.8 billion in 2009-10 to over USD 6.8 billion in 2025-26 (17.8 per cent share); Vietnam, from USD 1.8 billion in 2009-10 to USD 6.7 billion in 2025-26 (17.3 per cent share); and Thailand, where exports increased from USD 1.7 billion in 2009-10 to US 5.1 billion in 2025-26 (13.2 per cent share).