India, US trade talks expected to conclude this year: Economic Survey

India, US trade talks expected to conclude this year: Economic Survey

Negotiations for a trade deal between India and the United States, expected to conclude this year, could help reduce uncertainty on India’s external front, the Economic Survey for 2025–26 said.

“At the same time, ongoing trade negotiations with the United States are expected to conclude during the year, which could help reduce uncertainty on the external front. While these risks remain manageable, they reinforce the importance of maintaining adequate buffers and policy credibility,” the Survey said.

India and the United States have concluded six rounds of talks for a trade deal so far. Both nations have reaffirmed their commitment to continue dialogue with the aim of reaching an early conclusion of a mutually beneficial agreement.

The recent US decision to exempt over 200 agricultural and food products from elevated tariffs marks a constructive shift in India–US trade dynamics. The move restores price competitiveness for key Indian exports, including spices, tea, coffee, nuts, and processed foods, helping offset earlier tariff pressures that had constrained market access, the Survey noted.

The Survey added that slower growth in key trading partners, tariff-induced trade disruptions, and volatility in capital flows could intermittently weigh on exports and investor sentiment.

However, for India, these global conditions translate into external uncertainties rather than immediate macroeconomic stress.