India, US negotiating pact to liberalise trade in goods, non-sensitive agri products: Min

New Delhi: India and the US are negotiating a multi-sector bilateral trade agreement (BTA) and as a part of the negotiations, both sides are discussing liberalisation of trade in goods, including non-sensitive agricultural products, Parliament was informed on Tuesday.

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, Minister of State for Commerce and Industry Jitin Prasada said in a written reply to the Lok Sabha.

“India and the USA are negotiating a multi-sector BTA. As a part of negotiations, among other things, both sides are engaged in discussions on liberalization of trade in goods, including non-sensitive agricultural products, with the aim to expand trade and deepen the India-US trade relationship,” he said. He added that 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.

So far, five rounds of talks have been completed between the two countries on the proposed BTA. The US team has recently postponed their visit for the sixth round of negotiations, which was scheduled from August 25. In a separate reply, he said 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.

“The Government has taken note of tariff imposition by the US,” the minister said, adding 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.

He said that the government is committed to secure and advance the country’s national interest and protect the welfare of Indian farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry and take all necessary steps to help mitigate impact on trade including through appropriate export promotion and trade diversification measures.

Replying to a separate question, Prasada said India has entered into a Double Taxation Avoidance Agreement with the US that applies to the corporate taxation of Indian companies in the US. The benefits available in this agreement remain unchanged irrespective of the domestic laws of the US.

The US has not implemented the global minimum tax rules so far, and has stated that the commitment made by prior administration on it shall have no effect in America unless they are adopted in its

domestic laws.