India, US working to conclude trade agreement early: Govt

India and the United States are actively working to finalize a bilateral trade agreement, with both nations aiming for an "early conclusion," India's commerce ministry announced Saturday.

The ministry highlighted that ongoing discussions with the US Trade Representative (USTR) have successfully secured a reduced tariff rate for Indian goods. This development follows the US's imposition of a 10% additional ad valorem duty on imports from India, a move that lowered the initially proposed 12.5% tariff announced on June 2, 2026.

According to the ministry's statement, India engaged closely with the USTR through written submissions and consultations, including public hearings. These sustained efforts resulted in India being placed in a lower tier of additional tariffs under the final measures, offering a competitive advantage to Indian exports in key sectors.

The additional tariff was part of the USTR's final action after investigating trade practices of 60 economies, including India, related to bans on goods produced through forced labor. Notably, a significant portion of India's exports to the US, including pharmaceuticals and smartphones, remain exempt from this additional duty. Products already subject to Section 232 measures, such as steel, aluminum, and auto parts, are also excluded. Consequently, an estimated 45% of India's exports to the US are unaffected by the new tariff.

For the remaining 55% of exports, India's tariff incidence is comparatively lower than that of most other economies covered by the measures. The ministry also mentioned that a specific mechanism for textiles is still being established. India continues to negotiate this aspect with the US as part of the ongoing bilateral trade agreement talks, referencing potential tariff-rate quotas for certain countries like Bangladesh, Cambodia, Indonesia, and Malaysia.

The government reiterated its commitment to the India-US Bilateral Trade Agreement, as announced on February 2, 2026, and in accordance with the Joint Statement issued on February 7, 2026.