Synopsis : India's exports to the US surged by 22% despite a 10% reciprocal tariff, while the Indo-US trade deal progresses steadily with the fifth negotiation round underway. The government aims to close a limited trade deal before the August 2025 deadline as talks expand on customs and facilitation.
India’s commerce ministry confirmed that the Indo-US trade deal is progressing as per the agreed terms of reference, even as the fifth round of bilateral negotiations is underway in the United States. The chief negotiator and commerce secretary-designate, Rajesh Agarwal, outlined the structured rounds of discussions that have continued since March, ensuring steady progress toward the finalization of a limited trade deal before the extended reciprocal tariff implementation deadline on August 1, 2025.
Despite a 10% reciprocal tariff imposed by the US, India’s exports to the US jumped by an impressive 22% in the April-June quarter, while imports from the US rose by 12% in the same period, reflecting the resilience and demand for Indian goods in the US market. A commerce ministry official noted that except for the 10% baseline tariff, other countries face similar conditions, with China facing a higher 40% tariff, explaining India’s robust export growth despite tariff barriers.
The ministry also confirmed ongoing efforts to finalize the ASEAN trade deal, aiming for closure by October this year. Rajesh Agarwal highlighted that the 10th and 11th negotiation rounds with ASEAN are planned for August and October, focusing on trade facilitation and customs improvements, critical areas for India’s industry seeking a balanced and upgraded agreement with the 10-nation ASEAN bloc.
These negotiations underscore India’s broader trade strategy to diversify and secure favorable terms while addressing industry concerns regarding existing free trade agreements. As talks continue, India remains optimistic about strengthening its global trade footprint while protecting domestic interests.
Disclaimer : This article is for general informational purposes only and does not constitute financial or policy advice.
