India pushes for FTAs, eyes trade pact with US as reciprocal tariffs loom

Prasada’s written response comes as the United States prepares to impose reciprocal tariffs on countries, including India, that levy higher taxes on American goods starting April 2.

"Recent reforms have aimed at simplifying tariff structures and facilitating trade. As a WTO member, India adheres to the maximum tariff limits defined for different commodity lines, and the applied tariffs are generally lower than the bound rates," Prasada said.

Currently, India has 13 FTAs and nine preferential trade agreements and is negotiating similar pacts with the United Kingdom, the European Union, and Oman.

India is in talks with the US to formalise a bilateral trade agreement (BTA) — a decision made during Prime Minister Narendra Modi’s visit to Washington on February 13.

Both countries are targeting the first phase of a mutually beneficial, multi-sector BTA by fall, with a broader goal of doubling bilateral trade to $500 billion by 2030 under a new mission titled “Mission 500.”

India's tariff policy is designed to regulate trade, protect domestic industries, and generate revenue through import-export duties, Prasada added, according to the report.

However, the US’s reciprocal tariff move to address "longstanding trade imbalances" is expected to affect Indian exports across chemicals, automobiles, textiles, footwear, and other sectors.

To mitigate trade friction, India announced significant tariff reductions in its FY26 Budget on various products that could benefit US exports.

These include lower duties on fish hydrolysate, synthetic flavouring essences, ground satellite installations (including spares and consumables), and motorcycles based on engine capacity.