India remains fully engaged with US on trade negotiations: Commerce Secy

Barthwal said that Washington is a very important trade partner for New Delhi. A US delegation is scheduled to arrive in New Delhi for the next round of negotiations on August 25

Commerce Secretary Sunil Barthwal on Thursday said India remains fully engaged with the United States on trade negotiations, NDTV Profit reported. He said talks are ongoing across multiple channels, including at the level of the negotiating team, ministers, diplomats, and industry stakeholders. 

Speaking to journalists today, Barthwal also spoke on export growth, ongoing bilateral trade talks with the US, progress on FTAs with the United Kingdom and the efforts to counter the impact of fresh US tariffs while expanding India’s market presence across countries.

US is an important trade partner for India

US President Donald Trump had slapped a 25 per cent tariff on India, with an additional 25 per cent penalty for importing discounted oil from Russia. While the 25 per cent tariff kicked in on August 7, the additional 25 per cent is set to come into effect from August 25.

 

 

Barthwal confirmed that India remains fully engaged with the US on trade negotiations, as Washington is a very important trade partner for New Delhi.

 

A US delegation is scheduled to arrive in New Delhi for the next round of negotiations on August 25. The commerce secretary said the status of the upcoming negotiations will become clearer closer to the date. He added that the ‘Fall deadline’ for signing a bilateral trade agreement with the US remains in place.

Aware of sectors exposed to US tariffs: Comm secy

Speaking on the US tariffs, Barthwal said he would not like to speculate on whether the developments will play out favourably for India. However, the ministry is closely engaging with stakeholders to assess the tariff impact and is aware of the sectors most exposed to the US. Various export promotion councils have been consulted, with a particular focus on labour-intensive industries. 

 

As reported earlier by Business Standard, the commerce and industry ministry has prepared support schemes worth about ₹25,000 crore under the Export Promotion Mission for six-year period, in response to the continuing uncertainties from higher US tariffs. The proposal has been sent to the finance ministry for approval and, once cleared, will be rolled out after the Union Cabinet’s nod.

Trade with the UK, EU and China

On free trade agreements (FTAs), Barthwal said the UK deal is now in its final stages, with due processes underway in the British Parliament, and India has requested that it be fast-tracked so it can come into effect soon.

 

On the EU front, he indicated that substantial progress has been made, with both sides working to conclude negotiations by December, and further meetings planned at various levels, including ministerial discussions.

Trade negotiations with China are also moving at a positive pace, the commerce secretary said, adding that both imports and exports are developing with Beijing.

Govt aims to improve FTA utilisation

Barthwal stressed on the need to improve utilisation of existing FTAs, saying the ministry is fast-tracking facilitation measures to ensure better uptake. For example, the India-Australia FTA currently has a utilisation rate of 84 per cent for exports and 86 per cent for imports, but efforts are underway to push this closer to 100 per cent, he said. He added that the government is conducting exercises to ensure FTAs reach a certain saturation point, though he noted this would be a gradual process.

India’s exports continue to grow

Despite existing global uncertainties and geopolitical conflicts, India’s merchandise and services exports recorded substantial growth in July, as well as Q2FY26, said Barthwal, speaking to NDTV Profit. India’s export growth has significantly outpaced global trends. Barthwal said the key drivers of this growth were engineering goods, electronics, chemicals, pharmaceuticals, and gems and jewellery. 

Acknowledging the challenges posed by new tariffs, Barthwal noted the lack of clarity in the global trade landscape but stressed that India is focusing on areas within its control. The export strategy, he said, is built on four pillars: improving competitiveness, promoting exports, diversifying markets, and reducing import dependence.