Commerce Secretary Rajesh Agrawal said that India and the US are close to finalising their bilateral trade framework. “We are very close on the framework, which is likely to be done in a short period of time,” he said, as per a report by ANI.
“I won’t put a time period until the negotiations are closed,” he added.
He also talked about the recent visit of the United States Trade Representative (USTR) team. “The recent visit of USTR was important as it helped to take stock of our trade relationship, and also the stage at which we are in terms of the negotiations,” he said.
India, US step up trade talks
India and the US have recently stepped up negotiations to reach a trade agreement, with India expecting a reduction in tariffs, while the US is pushing India to lower tariffs and non-tariff barriers on American goods and open its market to US farm products. India is currently facing tariffs of up to 50% on some of its exports to the United States.
In the latest development in the India–US trade talks, Prime Minister Narendra Modi spoke with US President Donald Trump over the phone on December 11, during which they reviewed the progress in bilateral relations. A US trade delegation has also visited New Delhi.
According to an IANS report, US Trade Representative Jamieson Greer said India has made “the best we’ve ever received as a country” offer in the ongoing discussions. The comments come amid earlier US threats to impose taxes on Indian rice imports as well.
India begins discussions with Mexico
While speaking on Mexico, which has recently approved tariffs of up to 50% on Indian goods that will come into effect from 2026, Agrawal said India has started discussions with Mexico to reduce the impact of higher tariffs and protect bilateral trade interests. The two sides are exploring the possibility of a preferential trade agreement to address the issue quickly.
“Through continuous engagement thereafter, a virtual meeting between Commerce Secretary Rajesh Agrawal and Vice Minister Luis Rosendo was held on 2 December, agreeing to pursue a trade agreement to mitigate the impact promptly, with technical discussions initiated from 12 December,” Commerce Secretary Rajesh Agrawal said in a presentation.
India’s trade deficit narrows to $24.53 billion in November despite US tariffs
Despite the US tariff in place, India’s trade deficit narrowed to $24.53 billion in November from $41.68 billion in October, according to a recent government release. Exports stood at $38.13 billion, the highest level in the last 10 years. “In November, we have never crossed $38 billion,” Agrawal said.
He added that engineering goods exports rose 23.8%, electronic goods exports increased 39%, and gems and jewellery exports grew 27.8%, driving overall exports.
He also said that imports declined during the month. “There is a positive trend in imports overall, but this month imports are down by 1.88%. This has to be seen in context,” he said.
As per government data, India’s exports to China registered a significant increase during April–November 2025 compared with the corresponding period last year.
India’s exports to China rise nearly 33%
Merchandise exports to China rose from $9.20 billion during April–November 2024 to $12.22 billion during April–November 2025, recording a growth of about 32.83%. Important to note that US first imposed 25% tariff effective from April since then India is looking to diversify its export destinations.
On a monthly basis, exports to China in 2025–26 showed an overall upward trend despite some fluctuations. Exports stood at $1.39 billion in April 2025 and rose to $1.62 billion in May, before easing to $1.37 billion in June.
Exports moderated further in July and August to $1.34 billion and $1.21 billion, respectively, indicating a temporary mid-year slowdown.