SRINAGAR: The Union government has informed Parliament that it has examined the implications of evolving trade relations with the United States, including the impact of tariff measures on Indian exports, even as India and the US continue to deepen cooperation across defence, technology, trade and education under their Comprehensive Global Strategic Partnership.
In written replies to separate unstarred questions in the Rajya Sabha on Thursday, the Ministry of External Affairs said the US imposed reciprocal tariffs of 25 per cent on Indian goods in July 2025, followed by an additional 25 per cent ad valorem duty on select exports in August 2025, along with sector-specific tariffs under the US Trade Expansion Act. These measures have affected certain Indian exports, including steel, aluminium, copper, upholstered furniture, kitchen cabinets, softwood and automobiles.
The government said several categories of Indian goods and services, including crude oil and petroleum products, pharmaceuticals, bullion, select electronic items, precious metals, critical minerals, resins and plastics, agricultural products and information technology services, have not been subjected to these tariffs. Based on 2024 trade data, about USD 47.2 billion of India’s merchandise exports to the US, out of a total of approximately USD 86.4 billion, fall under categories impacted by the additional tariff measures.
The ministry said it is in close consultation with exporters and industry bodies to assess the impact of the US measures and to formulate responses to safeguard India’s export competitiveness. Measures include targeted support through the Export Promotion Mission, trade facilitation provisions of the Reserve Bank of India, the Credit Guarantee Scheme for Exporters, improved utilisation of existing free trade agreements and negotiations on new trade arrangements. Engagements are also ongoing with the US government for the early conclusion of a fair and mutually beneficial multi-sector India–US Bilateral Trade Agreement.
Despite tariff-related challenges, India–US merchandise trade has continued to grow. During April to November 2025, bilateral merchandise trade reached USD 94.44 billion, registering a growth of 12.16 per cent over the corresponding period last year. India’s exports to the US stood at USD 59.04 billion, while US exports to India were valued at USD 35.4 billion.
On the broader bilateral relationship, the government said India and the United States share convergence on a range of regional and global issues, including counter-terrorism, defence and security cooperation, trusted technologies, resilient supply chains and a shared commitment to a free, open and inclusive Indo-Pacific. Areas of divergence, including trade measures, sanctions-related issues and approaches to specific regional developments, are managed through institutional and high-level dialogue mechanisms.
The defence partnership was described as a key pillar of bilateral ties, encompassing joint military exercises, defence industrial collaboration, co-development and co-production initiatives, and enhanced interoperability across land, maritime, air, space and cyber domains.
In the technology sector, the two countries are collaborating under the US–India TRUST initiative, launched in February 2025, focusing on areas such as artificial intelligence, semiconductors, quantum technologies, biotechnology, energy and space, with an emphasis on building trusted and resilient supply chains.
The ministry also highlighted expanding cooperation in higher education. As of December 2025, 353,737 Indian students were pursuing higher studies in the United States. Institutional linkages are being strengthened through joint and dual degree programmes, twinning arrangements, centres of excellence and offshore campuses.
On the welfare of Indian nationals in the US, the government said Indian missions and posts provide consular assistance through emergency helplines, walk-in services, email, social media and the MADAD portal. The Indian Community Welfare Fund is used to assist Indian nationals, including students, in distress, and regular engagement is maintained with US authorities on issues related to skilled mobility and people-to-people ties.
Recent high-level engagements between the two countries include the Prime Minister’s official working visit to Washington DC in February 2025 and the visit of US Vice President JD Vance to India in April 2025. The External Affairs Minister and the Minister of Commerce and Industry have also held regular meetings with their US counterparts, alongside continued exchanges of parliamentary and congressional delegations.
