India And US Resume Trade Talks Amid Tariff Uncertainty And Global Supply Strains

India is preparing to send a trade delegation to Washington on 20 April in a renewed effort to advance negotiations on a proposed bilateral trade agreement with the United States.
According to a report by The Economic Times , the delegation’s travel to Washington next week is part of India’s renewed efforts to move forward with the trade discussions after earlier postponements and policy uncertainties slowed the process.
The delegation will be led by chief negotiator Darpan Jain, marking the first in-person meeting between the two sides in nearly four months, following a period of virtual engagement.
Commerce Secretary Rajesh Agarwal confirmed that the teams will focus on finalising the legal agreement, building on the joint statement released on 7 February. He emphasised that further discussions and follow-up engagement are necessary to move the process forward, with both countries expected to work together to establish timelines and next steps.
The talks come at a time when tariff rules in the US are evolving, and clarity on Washington’s trade stance is seen as crucial before any final deal can be concluded. Earlier this year, India and the US reached an interim arrangement to reduce tariffs on Indian exports to 18 percent. This followed the US Supreme Court’s decision to strike down reciprocal tariffs imposed by President Donald Trump on several countries.
Officials noted that tariffs linked to India’s purchase of Russian oil have been rolled back, though duties under Section 232 remain unchanged. India has signalled its intention to continue engaging with Washington to resolve outstanding issues.
Meanwhile, geopolitical tensions in West Asia are beginning to impact trade flows. Government data shows that India’s exports to the region fell sharply in March 2026, dropping by 57.95 percent, equivalent to $3.5 billion. Imports from West Asia also declined by 51.6 percent, or $8.7 billion. Officials have flagged this as a significant concern, with disruptions affecting both demand and supply chains.
Despite these challenges, India’s overall export performance for the Financial Year 2025 showed growth. Total exports crossed $860.09 billion, an increase of $35 billion compared to the previous year. When services are included, the figure rises to $974.9 billion, reflecting a growth rate of 4.22 percent.
Imports, however, grew by 6.4 percent to $979.4 billion, driven largely by record-high gold and silver prices. This widened the trade deficit to $119 billion, up from $94.6 billion the previous year. Merchandise exports recorded a modest increase of 1 percent, reaching $441.78 billion.
Several sectors contributed to export growth, including electronic goods, engineering products, marine items, and agricultural segments such as meat and dairy. Exports to China rose by $5 billion, while shipments to Spain increased by $2 billion. Nonetheless, merchandise exports in March stood at $38.92 billion, lower than the $42.05 billion recorded in the same month last year.
Agarwal expressed optimism that global challenges would ease in the coming months, providing relief to exporters.
India is also intensifying its push for new trade partnerships. The free trade agreement with the United Kingdom is expected to come into force by May 2026, while the agreement with New Zealand is scheduled to be signed on 27 April and implemented later in the year. Negotiations with Oman and the European Union are also underway, with hopes of concluding them within the year.
To strengthen domestic trade governance, the Commerce Ministry has launched a new digital platform. This website will integrate real-time trade data, link with Parliament systems for questions and answers, and provide a grievance redressal mechanism for exporters.
Officials believe that combining external trade deals with internal system improvements will help insulate India from global uncertainties while sustaining export growth.
Agencies
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