Trade Talks: India-US Agreement on the Horizon

India and the US are working to finalize a bilateral trade agreement amid high external tariffs and unpredictable global economic conditions. Despite the challenges, Indian exporters are adapting by exploring other markets. The conclusion of these negotiations could reduce trade uncertainties and benefit India's economy.

India and the United States are nearing the conclusion of a pivotal trade agreement, according to the Economic Survey 2025-26. The ongoing negotiations are expected to wrap up within the year, potentially easing external risks for India amid a volatile global economic climate.

The survey highlights several challenges, including slower growth in major trading partners and tariff-induced disruptions. Indian exports and investor sentiment are affected by intermittent volatility in capital flows. Currently, India faces a significant 50 per cent export tariff on its goods to the US, one of the highest imposed by any nation.

With India-US negotiations in their sixth round, progress is being made despite setbacks like the US increasing tariffs and non-tariff barriers, especially affecting India's export-driven sectors. Indian exporters are showing resilience by shifting focus to alternative markets, ensuring continued growth despite declining exports to the US.