Trade: India may conclude deals with the US, EU soon, says Sitharaman
Virendra Pandit
New Delhi: Finance Minister Nirmala Sitharaman said on Tuesday that India hopes to conclude favourable trade deals with the United States and the European Union soon.
Addressing the EXIM Bank Trade Conclave 2025 in New Delhi, she highlighted the ongoing free-trade agreement (FTA) negotiations and record-high export growth of the country, the media reported.
“Whether it is the UAE, Australia, European Free Trade Association (EFTA), the UK, the US, or the European Union, our intensive negotiations are going on and should conclude sooner. So, emphasis is being given to getting more FTAs signed,” Sitharaman said.
India’s total exports reached a record high of USD 825 billion in FY25, a 6.3 percent growth over previous year and significantly higher than USD 466 billion in 2013-14. In contrast, global exports grew only by 4 percent. India’s exporters managed to fast track and cross the 6.3 percent mark, she said.
Sitharaman’s statement came just a fortnight before the expiry of the 90-day pause for the US reciprocal tariffs, scheduled to begin on July 9, 2025. India and the US are yet to firm up the contours of the proposed bilateral interim trade deal. Negotiations are still on to finalise the elements to be included. However, the two sides are yet to agree on which items the interim pact would include from the huge list.
If a deal remains undecided by July 9, there is a risk of Indian exports feeling the full blow of the 26 percent reciprocal tariffs announced by US President Donald Trump on April 2.
The US is keen on increased market access for a whole spectrum of American goods, including food and agricultural products, which is a sensitive area for an agriculture-centric Indian economy.
The US also wants other items in the interim deal such as government procurement, intellectual property rights, customs and digital trade, including data flows.
India’s key demand is to get a roll-back on the entire 26 percent reciprocal tariff. While these tariffs were suspended until July 9, a 10 percent baseline tariff was imposed on all products in April.
Other demands include a withdrawal of the 50 percent US tariff on imports of steel and aluminium products which is hurting Indian exports. New Delhi also wants withdrawal of the sweeping 25 percent tariffs on autos and parts imposed by the US.
The proposed US-India interim deal will be a part of the comprehensive bilateral trade agreement. It will become part of the full deal when its first tranche is finalised by the proposed timeline of Fall 2025.
In April, Trump announced reciprocal tariffs on all trade partners with which the US has trade deficits, largely depending on the size of the deficit.
India’s competing countries, including Vietnam, the Philippines, Indonesia and Bangladesh, all got slapped with tariffs higher than India but are also negotiating with the US for a roll-back.
The US is India’s largest trade partner and export destination.
