In the last week of December, commerce and industry minister Piyush Goyal had a virtual meeting with US trade representative Jamieson Greer.
Despite the 50% tariff imposed by the US on India since August 27, exports to the US are still holding on. In December, India’s merchandise exports to the US were $6.89 billion against $7.01 billion in December 2024, down 1.8%. Exports were $6.98 billion in November 2025.
“All I can say is that with the US we are always in discussions… we are engaged. Negotiating teams are talking virtually on issues which are still pending. It is very near but we can’t put a deadline because that will happen when both sides are ready and they feel that this is the right time to announce a deal,” Agrawal said.
Tariffs, oil AND Iran
“US exports we have been holding well, we are in positive territory. Electronics and pharma exports are not under tariff. Going forward, we hope that we will be in positive territory,” Agrawal added.
Agrawal said the 50% tariff would “stress” sectors such as textile and leather. High tariffs must be putting strain on supply chains to the US… To mitigate challenges in our export supply chain, we need to make them more resilient. The best way to do this is to reduce dependence on one geography. That is what textile manufacturers are doing, which is why they can increase numbers despite the tariffs.”
The US continued to be India’s top export market in April-December FY26 with exports at $65.88 billion compared with $60.03 billion in year-ago period. “High tariffs are definitely putting pressure on some sectors so it is a mixed bag but we are working on how to make exports competitive, diversify to balance the losses and (add) new markets. We have been able to hold overall numbers despite tariffs,” the secretary said.
When asked if it is possible that there may not be a trade deal, he said: “We get into all (trade pact) negotiations with a very positive and optimistic mindset… we are engaged with the US. Both sides are engaged. So, I think both sides feel that this can be done”.
He also said India’s exports to Iran are largely humanitarian and it will wait for the US executive order on the 25% tariff announced by President Donald Trump on countries doing business with Tehran to assess its implications.
EU FTA
On the India-EU FTA, he said 20 out of 24 chapters have been finalised, with a few issues remaining under ongoing negotiations.
Agrawal said the two sides are trying to see if they can meet the January deadline because “that’s a good occasion when our leaders are meeting, but we can only make efforts”. He cautioned, however, that “coming near is not good enough”.
“Happy to report we are very close,” he said, adding that sensitive agricultural concerns on both sides have been kept outside the scope of the pactt, easing political and domestic sensitivities that have historically slowed progress in the talks.