Virtual talks between India and America are continuing.
The trade agreement between India and America is almost finalised. Commerce Secretary Rajesh Aggarwal said that both the countries are very close to the agreement and it will be announced when both the parties are ready. However, he did not give any fixed deadline. He told that the negotiation teams of both the countries are discussing in a ‘virtual’ manner and the talks have never stopped. In the last week of December, Commerce and Industry Minister Piyush Goyal had a virtual meeting with US Trade Representative Jameson Greer.
America has imposed 50% tariff on India since August 27, despite this, India’s exports to America remain the same. India’s goods exports to America in December stood at $6.89 billion, which is 1.8% less than $7.01 billion in December 2024. In November 2025 this figure was $6.98 billion. Aggarwal said, we are in constant talks with America. Teams from both sides are holding virtual discussions on the issues which are still pending. The agreement is very close, but we cannot give any date, because it will happen only when both the parties are ready and consider the right time.
Tariffs, Oil and Iran
Aggarwal said that India’s exports to America are still in a positive situation. Exports of electronics and medicines do not come under the scope of tariffs. It is expected that the situation will remain better in future also. He said that 50% tariff will put pressure on sectors like textiles and leather. Higher tariffs affect the supply chain. To deal with this, it is necessary to strengthen exports and reduce dependence on any one country. This is the reason why textile manufacturers are able to increase their exports despite tariffs. The US remained India’s largest export market in April-December FY26, where exports stood at $65.88 billion, compared to $60.03 billion in the same period last year.
Focus also on finding new markets
Aggarwal said that high tariffs are putting pressure on some sectors, but the government is working on making exports competitive, finding new markets and compensating for losses. Despite tariffs, overall export figures have remained stable. He said that India always talks with a positive mindset and both the countries are connected, so he feels that an agreement can be reached. He also said that most of India’s exports to Iran are on humanitarian grounds. India will wait for America’s order after President Donald Trump announced 25% tariff on countries doing business with Iran.
India-Europe FTA
Talking about the India-European Union Free Trade Agreement (FTA), Aggarwal said that 20 out of 24 chapters have been finalized and some issues are still under discussion. He said that both sides are trying to reach the January deadline, because the leaders of both the countries are meeting at that time. However, he warned that just being close is not enough. He said that the good thing is that sensitive issues related to agriculture have been kept out of the agreement, due to which political and domestic obstacles have been reduced.