India, US Near Initial Trade Framework Agreement
India and the United States are close to finalising an initial framework trade agreement, Commerce Secretary Rajesh Agrawal said on December 15 after six rounds of bilateral talks. The discussions have covered both a comprehensive bilateral trade agreement and an interim deal aimed at easing tariff pressures on both sides. Agrawal said sustained engagement has raised expectations that the two countries can agree on lowering reciprocal tariffs, though no specific timeline has been set.
Agrawal noted that the recent visit of the Deputy US Trade Representative to India helped align priorities and assess the broader trade environment. While formally named negotiation rounds may not continue, talks will carry on through physical and virtual meetings, with complexity increasing as discussions near completion. He also addressed concerns around agricultural trade, pointing out that the US continues to source nearly 80% of its basmati rice imports from India despite imposing a 50% tariff.
Highlighting trade performance, Agrawal said India’s exports to the US rebounded to $6.98 billion in November 2025, marking a strong month-on-month and year-on-year increase. Cumulative exports from April to November 2025 rose over 11% compared to the previous year. He added that government support measures, including the Export Promotion Mission, are expected to help exporters manage higher US tariffs, while India continues parallel trade talks with several other countries and blocs.
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