India, U.S. trade talks expected to conclude this year: Economic Survey

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Last Updated: 29th January 2026 - 05:58 pm

Summary:

Trade negotiations between India and the United States are expected to conclude later this year, according to the Economic Survey 2025-26. The Survey said progress on the proposed trade agreement could help reduce uncertainty on India’s external front amid global trade disruptions and volatile capital flows.

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The Economic Survey 2025-26 stated that negotiations for a trade agreement between India and the United States are expected to conclude this year. The Survey noted that progress on the talks could help reduce uncertainty on India’s external sector.

India and the United States have completed six rounds of negotiations so far.
Both countries have reiterated their commitment to continuing discussions with the objective of reaching an early, mutually beneficial agreement.

Recent developments in trade relations

The Survey highlighted the recent U.S. decision to exempt more than 200 agricultural and food products from elevated tariffs.

According to the report, the move marks a constructive shift in bilateral trade relations.
The exemption restores price competitiveness for important Indian exports, which include spices, tea, coffee, nuts, and processed food products, which had faced pressure following earlier tariff measures.

External risks and trade outlook

The Economic Survey said slower growth in key trading partners, tariff-related trade disruptions, and volatility in capital flows could periodically weigh on exports and investor sentiment.
However, the report added that for India, these global developments represent external uncertainties rather than immediate macroeconomic stress, underscoring the importance of maintaining adequate policy buffers and credibility.

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