US-India trade agreement is expected to be reached, India proposes mutual exemption of tariffs in steel and other industries

According to multiple sources, the United States and India are in intensive consultations on a bilateral trade agreement (BTA). India has proposed a proposal to exempt tariffs in key industries such as steel, automobiles and chemicals to alleviate long-standing trade frictions between the two sides.

Sources revealed that India has submitted a list of tariff concessions to the United States, covering multiple areas including steel, medical equipment, electronic products, etc., in exchange for US tariff exemptions on Indian exported goods. The move is also seen as a positive response to the U.S. demand for “reciprocal tariffs”.

Analysts believe that India’s move is not only to protect its own exporters from the impact of high tariffs, but also to seek closer US-India economic cooperation in the context of global supply chain restructuring. Although the U.S. has not officially announced trade restrictions on India, it is said to be considering imposing retaliatory tariffs of up to 26% on certain products.

According to the Ministry of Commerce of India, the two sides strive to complete preliminary negotiations on the agreement by autumn 2025. The agreement is expected to provide companies on both sides with broader market access channels and help achieve the goal of bilateral trade volume reaching US$500 billion by 2030.

If the negotiations go smoothly, this will be another important bilateral economic and trade progress after the United States adjusted its trade policies with many countries in recent years. It is expected to inject positive signals into global trade in the context of uncertainty in the current global economy.