## Summary of India-U.S. Trade Negotiations (August 12, 2025)
This document summarizes the current status of India-U.S. bilateral trade negotiations as of August 12, 2025, in response to questions raised in Lok Sabha.
**Current Status of Negotiations:**
* India-U.S. Bilateral Trade Agreement (BTA) negotiations were launched in March 2025.
* Five rounds of negotiations have been held, with the most recent round taking place in Washington, D.C., from July 14-18, 2025.
**U.S. Tariff Policies and Impact Assessment:**
* A reciprocal tariff at a rate of 25% has been imposed by the U.S. on certain goods exported from India, effective August 7, 2025. (Source: [https://www.whitehouse.gov/presidential-actions/2025/07/further-modifying-the-reciprocal-tariff-rates](https://www.whitehouse.gov/presidential-actions/2025/07/further-modifying-the-reciprocal-tariff-rates))
* It is estimated that approximately 55% of the total value of India's merchandise exports to the U.S. is subject to this reciprocal tariff.
* An additional *ad valorem* duty of 25% has been imposed on certain goods exported from India, effective August 27, 2025. (Source: [https://www.whitehouse.gov/presidential-actions/2025/08/addressing-threats-to-the-united-states-by-the-government-of-the-russian-federation](https://www.whitehouse.gov/presidential-actions/2025/08/addressing-threats-to-the-united-states-by-the-government-of-the-russian-federation))
* As of this statement, no additional tariffs have been imposed on Indian exports to the U.S. in the pharmaceuticals and electronics sectors.
* The impact of reciprocal tariffs on India's exports, including the textiles sector, will be determined by factors such as product differentiation, demand, quality, and contractual arrangements.
**Government Response and Objectives:**
* The Government of India is engaged with stakeholders, including exporters and industry representatives, to gather feedback on the impact of the reciprocal tariffs imposed by the U.S.
* The Government prioritizes the protection and promotion of the welfare of farmers, workers, entrepreneurs, exporters, MSMEs, and all sections of industry.
* India is engaged in discussions with the U.S. on the India-USA Bilateral Trade Agreement (BTA) with the goal of expanding trade and investment through tariff stability and long-term trade predictability.
Key Entities Referenced
India-US Trade Negotiations: Bilateral trade discussions between India and the United States aimed at expanding trade and investment.
SHRI ABHISHEK BANERJEE: Member of LOK SABHA who raised questions regarding India-US trade negotiations.
COMMERCE AND INDUSTRY: The Indian government ministry responsible for trade and industrial policy.
26 baseline tariff: Proposed tariff rate by the U.S. on imports from India.
textiles, pharmaceuticals and electronics: Key sectors of Indian exports potentially affected by the proposed U.S. tariff policies.
U.S. Trade Representative: The primary trade negotiator for the United States government.
SHRI JITIN PRASADA: Minister of State in the Ministry of Commerce and Industry, answering the questions related to India-US trade negotiations.
Washington, USA: Location where the fifth round of India-US trade negotiations took place.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 3832
ANSWERED ON 12/08/2025
INDIA-US TRADE NEGOTIATIONS
3832. SHRI ABHISHEK BANERJEE
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) the current status of the India–U.S. bilateral trade negotiations and by when a
framework agreement is expected to be concluded;
(b) whether the Government has assessed the potential impact of the proposed 26%
baseline tariff by the U.S. on Indian exporters, particularly in sectors such as textiles,
pharmaceuticals and electronics, if so, the details thereof, if not, the reasons therefor;
(c) the steps taken to secure favourable terms or exemptions for Indian goods in the
event of such tariff policies being implemented; and
(d) whether India has raised concerns over tariff unpredictability or trade barriers with
the U.S. Trade Representative during the ongoing talks, if not, the reasons therefor?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) India US bilateral Trade Agreement negotiations were launched in March 2025. Five
rounds of negotiations have been held, the last being from July 14-18th, 2025 at Washington,
USA.
(b) to (d) Reciprocal tariff at the rate of 25% has been imposed on certain goods exported
from India to the USA starting from August 07th, 2025. (Source:
https://www.whitehouse.gov/presidential-actions/2025/07/further-modifying-the-reciprocal-
tariff-rates/ ) It is estimated that around 55% of total value of India’s merchandise exports to
the US is subjected to this reciprocal tariff. Further, additional ad valorem rate of duty of
25% with effect from 27th August, 2025 has been imposed on certain goods exported from
India. (Source: https://www.whitehouse.gov/presidential-actions/2025/08/addressing-
threats-to-the-united-states-by-the-government-of-the-russian-federation/ ). No additional
tariffs have been imposed on Indian exports to the USA in sectors like pharmaceuticals, and
electronics as yet.
1Combination of different factors such as product differentiation, demand, quality, contractual
arrangements would determine the impact of reciprocal tariffs on India’s exports including
in textiles sector. Government is engaged with all stakeholders including exporters and
industry for taking feedback of their assessment of the impact from the reciprocal tariffs
imposed by the USA. The Government attaches the utmost importance to protecting and
promoting welfare of farmers, workers, entrepreneurs, exporters, MSMEs and all sections
of industry.
Government of India is involved in the discussions on the India-USA Bilateral Trade
Agreement (BTA) with the USA with the aim to expand trade and investment through tariff
stability and long term trade predictability.
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2