India’s Parliamentary Committee calls for expedited negotiations on the US trade deal, emphasising protective measures for strategic sectors amid deepening economic ties and supply chain realignments.
India’s Parliamentary Standing Committee on Commerce has urged the government to finalise the proposed bilateral trade agreement with the United States as quickly as possible, while making sure Indian exporters are not left exposed to higher tariffs or new regulatory hurdles. In a report tabled in Parliament, the committee said an early deal could give businesses on both sides greater predictability, but only if it includes safeguards for sectors where India has a strong export stake.
According to the committee, New Delhi should seek full exemption for key products such as generic medicines, critical minerals and smartphones from any future US tariff increases. It also recommended a dedicated watch desk in the Directorate General of Foreign Trade to track US customs audits and alert exporters to rule changes, alongside a faster mechanism for resolving disputes. The panel further called for mutual recognition agreements in areas including professional services, pharmaceuticals and agriculture, so that products and qualifications accepted in one market are more easily recognised in the other.
The report comes against the backdrop of steadily deepening trade ties. In April 2025, the United States and India set terms of reference for a bilateral trade agreement after agreeing to launch negotiations earlier that year, according to the US Trade Representative’s office. More recently, in May 2026, the two countries signed a framework deal on critical minerals and rare earths, which are central to batteries, semiconductors and other technology manufacturing, as both governments look to strengthen supply chains and reduce reliance on China. The committee’s own study has also been informed by meetings with industry groups and government officials over recent months.
The panel said services trade between the two countries has expanded sharply, but imports into India are growing faster than exports. It also warned that Indian exporters continue to face exchange-rate swings, commodity price pressures and higher US tariffs, which it said have hurt competitiveness. Alongside tariff relief, the committee wants the government to push for deeper Indian integration into US supply chains, more American investment in electronics, semiconductors and clean energy, and easier access for labour-intensive exporters in textiles, gems and jewellery, engineering goods and auto products.
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