India, US renew trade deal push as New Delhi to send delegation to Washington

The delegation will be led by chief negotiator Darpan Jain.

Officials confirmed that both sides will hold in-person discussions after a gap of several months, during which engagement continued through virtual meetings.

Talks to focus on legal framework

Commerce Secretary Rajesh Agarwal said the discussions will centre on finalising the legal framework of the agreement, building on the joint statement issued earlier this year.

He indicated that further consultations are required to determine timelines and next steps, with both sides aiming to advance negotiations through continued engagement.

Tariff issues remain key focus

The renewed talks come as evolving tariff policies in the United States continue to shape the negotiation process.

Officials noted that clarity on Washington’s trade stance will be critical before finalising any agreement.

Earlier, both countries reached an interim arrangement to reduce tariffs on Indian exports to 18 percent.

This followed a decision by the US Supreme Court to strike down certain reciprocal tariffs introduced under Donald Trump.

Officials added that duties linked to India’s import of Russian oil have been rolled back, while tariffs under Section 232 remain unchanged.

West Asia tensions impact trade flows

Geopolitical developments in West Asia have begun affecting India’s trade performance.

Government data showed that exports to the region in March 2026 declined by 57.95 percent, amounting to a drop of $3.5 billion.

Imports from the region also fell by 51.6 percent, or $8.7 billion, reflecting disruptions in supply chains and demand.

Exports grow, trade deficit expands

India’s overall exports for the financial year 2025 reached $860.09 billion, marking an increase of $35 billion from the previous year.

Including services, total exports stood at $974.9 billion, recording a growth of 4.22 percent.

Imports rose by 6.4 percent to $979.4 billion, driven largely by higher gold and silver prices.

As a result, the trade deficit widened to $119 billion, compared with $94.6 billion in the previous year.

Merchandise exports recorded a modest rise of 1 percent to $441.78 billion, with sectors such as electronics, engineering goods, marine products, and agriculture contributing to growth.

Expanding global trade engagements

India is also advancing multiple trade agreements to diversify its global partnerships.

The proposed free trade agreement with the United Kingdom is expected to be implemented by May 2026.

An agreement with New Zealand is scheduled for signing later this month, while negotiations are ongoing with Oman and the European Union.

Digital platform launched to support trade

The Commerce Ministry has introduced a new digital platform designed to enhance trade governance.

The system will provide real-time trade data, integrate with parliamentary processes and offer a grievance redressal mechanism for exporters.

Officials stated that strengthening trade frameworks alongside expanding international agreements remains central to sustaining export growth amid global uncertainties.