India, US Negotiating Multi-Sector Trade Pact With Safeguards For Agriculture Sector: Jitin Prasada

New Delhi, Aug 20 (KNN) India and the United States are negotiating a multi-sector Bilateral Trade Agreement (BTA) covering goods, services and investment, with discussions also touching on liberalisation of trade in non-sensitive agricultural products, Parliament was informed on Tuesday.

Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha that the government is consulting widely with stakeholders, including farming experts, to ensure the interests of India’s rural economy and agricultural sector are safeguarded. 

“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.

Five rounds of negotiations have taken place so far, though the US recently postponed its visit for the sixth round, which had been scheduled for August 25.

Prasada also said that tariff issues remain a key challenge in the bilateral relationship. 

India has imposed a reciprocal tariff of 25 percent on certain US goods effective August 7, while Washington has announced an additional 25 percent duty on Indian exports from August 27. 

Based on 2024 trade values, about USD 48.2 billion worth of Indian merchandise exports to the US will be affected.

“The government has taken note of tariff imposition by the US and is committed to mitigating the impact on Indian trade through export promotion and diversification measures,” the minister said, adding that MSMEs, workers and employment-intensive industries will receive special attention.

Responding to another query, Prasada said India’s Double Taxation Avoidance Agreement (DTAA) with the US remains unchanged. He clarified that the US has not implemented global minimum tax rules and any future changes in US corporate tax law are unlikely to directly affect Indian exporters selling into the US market.

In a separate reply, the minister said that the US has announced countervailing duties between January and July 2025 on several Indian exports, including melamine, hexamine, epoxy resins, ceramic tiles, hard empty capsules, torsion springs, and high chrome cast iron grinding media.

He further noted that in April, the US imposed a baseline tariff of 10 percent on nearly all imports, along with country-specific reciprocal tariffs — including 26 percent on Indian goods. 

Although the India-specific tariff was initially suspended until August 1, 2025, Indian exports worth USD 48.2 billion in 2024 fall within the tariff’s scope.

(KNN Bureau)