Commerce Secretary Rajesh Agrawal has said that, alongside negotiations on a bilateral trade agreement with the US, India is pursuing a framework deal to tackle reciprocal tariff challenges faced by domestic exporters.
A senior Department of Commerce official has said India is likely to conclude a framework trade deal with the US within this calendar year to address reciprocal tariff challenges.
Speaking at the 98th AGM and annual convention of the industry chamber Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi on Friday, during the panel discussion ‘From Challenges to Competitiveness: Policy Priorities for Sustaining High Growth’, Commerce Secretary Rajesh Agrawal provided an insight into the two-pronged negotiations currently underway with the world’s largest economy.
“We are engaged in not only negotiating a bilateral trade agreement, which will take considerable time given its wide-ranging nature, but also working on a framework trade deal to address the reciprocal tariff challenge that Indian exporters face today. These are two separate parallel negotiations, but one will feed into the other. What needs to come first is the framework trade deal.”
He expressed confidence about finalising the framework agreement soon. “We are hopeful that we will find a solution within this calendar year. We have engaged deeply with US teams over the last few months and have tried to iron out most issues. It is now only a matter of time to find the right landing zone for both countries.”
New FDI Strategy
Agrawal revealed a defining shift in India’s Free Trade Agreement (FTA) strategy. “For the first time, India is trying to get FDI commitments through FTA negotiations, similar to the trade agreement with EFTA (European Free Trade Association).”
This marks a significant innovation in the country’s approach to trade agreements, moving beyond traditional market access provisions to integrate investment flows into its trade architecture.
Agrawal also highlighted India’s export performance despite global trade headwinds. “For the first seven months of this year, our merchandise exports stood at $491 billion compared to $469 billion last year, demonstrating the resilience of the Indian industry.”
Pointing to diversification, he noted that India’s shrimp exports to the EU have increased by 60 per cent. “This shows the strength of Indian industry in finding new opportunities and diversifying trade to make export supply chains more resilient,” he said.
On the India‑EU trade agreement, Agrawal indicated that negotiations are advancing, with the India‑EU summit scheduled for January next year expected to provide further momentum.