International Trade Law
India – U.S. Trade Negotiations: A Strategic Opportunity for Indian Exporters
The global trade system is undergoing a significant transformation. The U.S. President has sent formal letters to more than 20 countries alerting them of the tariff rates applicable as of August 1, 2025. While nations like China, Mexico, Canada, Bangladesh, and Vietnam are preparing for higher tariffs on their exports to the U.S, one country has so far remained off the list- India. In the absence of a tariff notification from the U.S, India finds itself in an advantageous position that could give Indian exporters a significant competitive edge, particularly in key sectors such as pharmaceuticals, textiles, electronics, and seafood, thereby making Indian goods relatively cheaper and more attractive in the US market. The U.S. remains a crucial destination for many of India’s high-value and labour-intensive exports. Between 2022- 2024, India’s exports to the U.S. were primarily dominated by high-value sectors, including electrical machinery (HS 85), pharmaceuticals (HS 30), precious stones and metals (HS 71), and mechanical appliances (HS 84). Collectively, these sectors accounted for 43.5% of India’s total exports to the U.S.
16 July 2025