India, US Negotiating Multi-sector Bilateral Trade Agreement: Jitin Prasada

New Delhi: Minister of state for commerce and industry Jitin Prasada on Tuesday said that India and the US are engaged in negotiating a multi-sector bilateral trade agreement, and as a part of the negotiations, both sides are discussing liberalisation of trade in goods, including non-sensitive agricultural products.

Informing to Parliament, Prasada said that the government is engaged with all relevant stakeholders including agriculture, farming experts, to assess the interests and requirements of India's rural economy, farmers and agricultural sector. “The government is committed to taking all necessary steps to secure and advance the country's national interest and protect the welfare of our farmers, rural economy and agriculture sector,” he said in a written reply to the Lok Sabha.

“As India and the US are negotiating a multi-sector bilateral trade deal, both sides are engaged in discussions on liberalisation of trade in goods, including non-sensitive agricultural products, with the aim to expand trade and deepen the India-US trade relationship,” the minister said.

In a separate reply, he also said that a reciprocal tariff at the rate of 25 per cent has been imposed on certain goods exported from India to the US starting from August 7. “Further, additional duty of 25 per cent with effect from August 27, 2025 has been imposed on certain goods exported from India,” he said. “The government has taken note of tariff imposition by the US. It is estimated that around $48.2 billion of India’s merchandise export (based on 2024 trade value) to the US will be subject to the above additional tariffs. India has entered into a double taxation avoidance agreement with the US that applies to the corporate taxation of Indian companies in the United States,” he added.