Roving Periscope: India readying for the Aug 25 round of US trade negotiations
Virendra Pandit
New Delhi: A day before Prime Minister Narendra Modi’s much anticipated address from the ramparts of the Red Fort in New Delhi, marking the 78th Independence Day, India on Thursday asserted that it remains “fully engaged” with the US on trade negotiations, the media reported.
A US trade delegation is scheduled to arrive in New Delhi for the next round of negotiations on August 25.
Union Commerce Secretary Sunil Barthwal on Thursday said India remains fully engaged with the United States on trade negotiations and talks are in progress across multiple channels, such as the levels of the negotiating teams, ministers, diplomats, and industry stakeholders. He said Washington is a very important trade partner for New Delhi.
Speaking to reporters, he also spoke on export growth, ongoing bilateral trade talks with the US, progress on the free-trade agreements (FTAs) with the United Kingdom and the ongoing efforts to counter the impact of fresh US tariffs while expanding India’s market presence across countries.
US President Donald Trump had slapped a 25 percent tariff on India, with an additional 25 percent penalty for importing discounted oil from Russia. While the 25 percent tariff kicked in on August 7, the 25 percent penalty will become effective from August 25.
Barthwal said the status of the upcoming negotiations will become clearer before August 25. As of now, the ‘Fall deadline’ for signing a bilateral trade agreement (BTA) with the US remains in place.
About the US tariffs, he declined to speculate on whether the developments will play out favourably for India. However, the ministry is closely engaging with stakeholders to assess the tariff impact and is aware of the sectors most exposed to the US. Various export promotion councils have been consulted, with a particular focus on labour-intensive industries.
In the face of continuing uncertainties because of higher US tariffs, the Union Ministries for Commerce and Industry had drafted support schemes worth about Rs. 25,000 crore under the Export Promotion Mission for a six-year period. The proposal has been sent to the finance ministry for approval and, once cleared, will be rolled out after the Union Cabinet’s nod.
On FTAs, Barthwal said the UK deal is now in its final stages, with due processes underway in the British Parliament, and India has requested that it be fast-tracked so it can come into effect soon. On the EU front, he indicated that substantial progress has been made, with both sides working to conclude negotiations by December 2025, and further meetings planned at various levels, including ministerial discussions, the reports said.
Trade negotiations with China are also moving at a positive pace, he said, adding that both imports and exports are developing with Beijing.
Barthwal emphasized the need to improve utilisation of existing FTAs, saying the ministry is fast-tracking facilitation measures to ensure better uptake. For example, the India-Australia FTA currently has a utilisation rate of 84 percent for exports and 86 percent for imports, but efforts are underway to push this closer to 100 percent, he said. The government is conducting exercises to ensure FTAs reach a certain saturation point, which would be a gradual process.
Despite existing global uncertainties and geopolitical conflicts, India’s merchandise and services exports recorded substantial growth in July, as well as Q2FY26. India’s export growth has significantly outpaced global trends. The key drivers of this growth were engineering goods, electronics, chemicals, pharmaceuticals, and gems and jewellery.
Acknowledging the challenges posed by new tariffs, Barthwal noted the lack of clarity in the global trade landscape but stressed that India is focusing on areas within its control. The export strategy, he said, is built on four pillars: improving competitiveness, promoting exports, diversifying markets, and reducing import dependence.
