Evaluation of India - US Trade Relations

The Standing Committee on Commerce examined the impact of 2025 US tariffs on India's key export sectors to assess how these measures affect Indian industries and trade relations. This matters to citizens as it highlights potential economic disruptions in jobs, exports, and supply chains across sectors like agriculture, manufacturing, and services.

Ministry of Commerce and Industry (implied by the Committee's jurisdiction), Indian exporters in automotive, gems and jewellery, textiles, agriculture, marine products, chemicals, and metals sectors, and US importers.

• Committee recommended concluding the Bilateral Trade Agreement (BTA) with the US at the earliest while protecting Indian interests.
• Committee advised using Production-Linked Incentive (PLI) schemes to enhance export infrastructure and cost-competitiveness.
• Committee recommended negotiating complete exemption for key exports including generic medicines, critical minerals, and smartphones.
• Committee suggested formulating a dedicated framework for the digital economy and services sector to harmonize cross-border data flows and intellectual property rights.
• Committee recommended prioritizing mutual recognition agreements for professional services, pharmaceuticals, and agricultural standards.
• Committee advised creating a fast-track institutional mechanism to resolve trade frictions with US authorities before they escalate.
• Committee recommended providing targeted financial subsidies and lower interest rates on export credits to small manufacturers in the engineering sector.
• Committee suggested establishing jewellery trade and distribution hubs in Hong Kong, Thailand, and the UK to reduce dependence on the US market.
• Committee recommended diversifying textile exports into technical textiles and man-made fibre products, and faster implementation of PM MITRA, PLI, and Samarth schemes.
• Committee advised protecting small and marginal farmers in any BTA and establishing a pre-clearance protocol with US customs for agricultural products.
• Committee recommended a support package for marine sector exporters, processors, and shrimp farmers, and high-level engagement on anti-dumping duties.
• Committee suggested creating a strict protection framework for India’s essential oils sector and diversifying into specialty chemicals.
• Committee recommended pursuing long-term barrier-free access to aluminium and copper scrap and leveraging the National Critical Minerals Mission.

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