The Department-related Parliamentary Standing Committee on Commerce has recommended the early conclusion of the proposed India–US Bilateral Trade Agreement (BTA), while stressing that India’s strategic and commercial interests must remain fully protected. The panel also called for a comprehensive review of bilateral trade relations in view of recent US tariff measures that have affected several export-oriented sectors.
The 200th report of the Rajya Sabha Committee on Commerce, chaired by Rajya Sabha MP Dola Sen, was presented in both Houses of Parliament on Thursday. The report evaluates India-US trade relations, examines the impact of US tariff actions across key sectors, and outlines a wide-ranging set of recommendations aimed at strengthening India’s trade competitiveness.
The Committee held four meetings over nearly eight hours and consulted officials from multiple ministries, financial institutions, export promotion bodies and industry associations, including the Federation of Indian Export Organisations (FIEO), Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), APEDA and representatives of sectors such as fisheries, textiles, automobiles, agriculture, leather, chemicals and MSMEs.
The panel recommended that the government prepare a time-bound roadmap to achieve the objectives of the “Mission 500” initiative by expanding trade in goods and services, strengthening cooperation in critical technologies under the TRUST framework, improving supply-chain resilience and addressing tariff as well as non-tariff barriers faced by Indian exporters. It also advocated greater use of Production Linked Incentive (PLI) schemes to improve export competitiveness, faster Mutual Recognition Agreements in professional services, pharmaceuticals and agriculture, and an institutional mechanism to monitor currency volatility and logistics challenges affecting MSME exporters.
Expressing concern over rapidly changing US tariff measures, the Committee urged the government to conclude the proposed trade agreement without compromising India’s interests. It also recommended seeking exemptions for key Indian exports such as generic medicines, smartphones and critical minerals from future US tariff hikes. The panel further proposed setting up a dedicated Directorate General of Foreign Trade (DGFT) watch desk to monitor US customs actions and provide real-time alerts to exporters, while calling for financial and technical support to MSMEs to strengthen compliance with origin and documentation requirements.
The report highlighted the growing importance of services trade, noting that India’s services exports to the US reached USD 51.2 billion, while bilateral services trade more than doubled from USD 40.53 billion in 2014 to USD 98.52 billion in 2024. The Committee recommended promoting high-value knowledge exports in areas such as artificial intelligence, digital health and engineering research, while leveraging friend-shoring opportunities to integrate Indian manufacturers into US supply chains in electronics, semiconductors and clean energy.
Across manufacturing sectors, the Committee recommended measures to strengthen engineering exports, attract US investment, support technology upgradation and diversify export markets. It proposed the creation of a dedicated MSME Export Resilience Scheme to cushion smaller manufacturers from tariff shocks and suggested establishing a National Fund to help exporters redesign products and obtain international certifications required for entry into new global supply chains.
The panel also outlined sector-specific recommendations for gems and jewellery, marine products, textiles, agriculture, leather and chemicals. These include enhanced export credit support, market diversification, investment in technology, improved logistics infrastructure, expansion of technical textiles and man-made fibre production, faster implementation of PM MITRA Parks and greater promotion of value-added exports. It also called for stronger quality infrastructure, internationally accredited testing facilities, better traceability systems and enhanced branding of Indian products in overseas markets.
On the broader trade outlook, the Committee observed that US tariffs, though reduced from recent highs, remain significantly above earlier levels and continue to affect Indian exports. It urged the government to strengthen initiatives such as Make in India, the Production Linked Incentive schemes, the National Logistics Policy and PM GatiShakti to improve India’s manufacturing competitiveness and position the country as a trusted global manufacturing and supply-chain hub. It also stressed the need to promote digital trade, Global Capability Centres, artificial intelligence, cybersecurity, fintech and engineering services to sustain long-term export growth.
The report further called for increased investment cooperation in advanced manufacturing, semiconductors, clean energy, biotechnology, defence production and digital infrastructure. It recommended stronger engagement through the WTO and the India-US Trade Policy Forum to resolve long-pending market access issues, reduce compliance costs and address tariff and non-tariff barriers through enhanced regulatory cooperation.
Looking ahead, the Committee identified emerging technologies—including artificial intelligence, quantum computing, advanced communications and semiconductors—as key areas for expanding India-US economic cooperation. It recommended deeper collaboration between start-ups, research institutions and technology companies, along with dedicated initiatives to enable MSMEs to participate more effectively in digital technology partnerships and advanced skill development programmes.
