'India, US very close to initial framework deal': Commerce Secretary

India and the United States are on the brink of finalising an initial framework agreement, Commerce Secretary Rajesh Agrawal said on December 15.

"We are very close on closing the initial framework deal but I don't want to put a timeline to it," Agrawal told reporters in New Delhi, following six rounds of bilateral trade talks. These discussions have addressed both a full-fledged bilateral trade agreement (BTA) and an interim arrangement to ease tariff burdens on both sides.

“There’s a fair expectation that both countries will be able to agree to a deal to lower reciprocal tariffs,” he added, pointing to sustained engagement between the two governments.

The recent visit by the Deputy US Trade Representative to India was part of efforts to align on priorities and assess the broader trade environment, Agrawal said. While no further formally labelled rounds may take place, he confirmed that negotiations will continue in both physical and virtual formats. “We are very close to a framework deal, though no timeline can be specified,” he reiterated, acknowledging that such talks tend to grow more complex in the final stages.

Agrawal also addressed concerns around rice exports, noting that the US sources nearly 80% of its basmati rice imports from India despite a 50% tariff. He referred to US Treasury Secretary Scott Bessent’s remarks as a sign of continuing bilateral trade engagement.

India’s exports to the US rebounded in November 2025 to $6.98 billion in November 2025, rising 10.61% from $6.31 billion in October 2025. “India’s exports to the US have held forth,” the commerce secretary highlighted.  India’s exports to the US were lower at $5.7 billion in November 2024.

On a cumulative basis, India’s exports to the US were $59.04 billion between April and November 2025, rising 11.38% from $53.01 billion in the corresponding period a year ago.

The government is hopeful that support measures announced in recent months will help exporters tide over the 50% tariff levied by the US. The guidelines for the recently announced Export Promotion Mission are also being finalised and are likely to be announced soon.

Indian exporters are facing 30% higher tariffs from the US compared to other countries, Agrawal noted, adding that measures including the finance ministry’s export package and the EPM are likely to help them.

India is currently in talks with several other countries and trade blocs — including Canada, Peru, the EU, Chile, Qatar, Israel, SACU, and New Zealand. The India-Oman trade agreement has been completed and is expected to be signed soon.

Separately, Commerce Secretary Rajesh Agrawal said that India is assessing the impact of Mexico’s decision to raise MFN tariffs on non-FTA partners, a move that could affect around $2 billion worth of Indian exports, even as New Delhi has been told that the measure is not directed at India.

“The primary target is not India,” the Commerce Secretary said, adding that New Delhi is engaging closely with Mexican authorities to mitigate the impact on Indian exporters. A virtual meeting was held on December 2 between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister Dr Luis Rosendo, where both sides agreed to pursue a trade arrangement to address the issue promptly.