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        Customs & Trade

        Engagement ongoing with US on mutually beneficial bilateral trade agreement: Govt to Parliament

        December 5, 2025

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        New Delhi, Dec 5 (PTI) India's engagement with the US is ongoing, including through negotiations aimed at concluding a mutually beneficial, multi-sector bilateral trade agreement, the Centre informed Parliament on Friday.

        In a written response, Minister of State for External Affairs Kirti Vardhan Singh also said visa-related decisions are "sovereign matters" but India and US remain actively engaged on the issue, underlining that skilled talent mobility helps both countries.

        He was responding to a query by DMK MP Kalanidhi Veeraswamy and TMC MP Mahua Moitra.

        The Ministry of External Affairs was asked about the recent changes in tariff structures and H-1B visa policies by certain countries, particularly the US, which could adversely affect Indian exports and skilled professionals.

        "On September 19, 2025, the US administration issued guidelines titled 'Presidential Proclamation' imposing a fee of USD 1,00,000 on new H-1B petitions if the petitioner does not have a valid H-1B visa and is applying from outside the United States.

        "Subsequently, the United States Immigration and Citizenship Services (USCIS) issued H1B FAQ on September 21, 2025 giving clarity on the non-applicability of the fee to certain categories of applicants already residing in the US," Singh said.

        Since the proclamation took effect only from September 21, "there is no comparable data as yet to demonstrate its impact on Indian nationals," the MoS said.

        Separately, the US Department of Homeland Security is also considering implementing a "weighted selection process that would generally favour the allocation of H-1B visas to higher skilled and higher paid aliens," the minister added.

        "Any assessment of its impact is hypothetical at this stage," Singh said.

        MoS Singh in his response also said that on July 31, 2025, the US imposed "reciprocal tariffs" invoking national emergency authorities under the International Emergency Economic Powers Act (IEEPA) on certain goods exported by most countries, including India.

        Further, on August 27, an additional 25 per cent ad valorem duty was applied on select Indian exports under IEEPA in "response to India's importation of Russian oil," he said.

        The US has imposed a range of "sector-specific tariffs under Section 232 of the Trade Expansion Act on products such as steel and aluminium, copper, upholstered furniture and kitchen cabinets, softwood, and automobiles, the government said.

        Several goods and services, including crude oil and petroleum products, pharmaceuticals, bullion, certain electronic items, precious metals, critical minerals, resins and plastics, agricultural products, and IT services, among others, have not been subject to tariffs, it said.

        Based on 2024 trade data, an estimated USD 47.2 billion of India's merchandise exports to the US, out of a total of about USD 86.4 billion, fall under the categories "subject to these additional tariffs", Singh said.

        "The government remains in close consultation with exporters and industry to assess their feedback on the implications of the US measures. Engagement with the United States is ongoing, including through negotiations aimed at concluding a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA)," he said.

        On H-1B visas, the minister said, "While visa-related decisions are sovereign matters, India believes that skilled talent mobility has long played a significant role in promoting technology advancement, innovation, economic growth, and wealth creation in both India and the United States." "Stakeholders in both countries remain engaged in discussions on ensuring continued support for innovation-driven industries. The government of India remains actively engaged with the US government on all matters concerning our national interests," it said. PTI KND SKY SKY

        India-US trade engagement continues amid US tariffs and H 1B policy changes affecting exports and skilled mobility. India and the US are negotiating a multi-sector Bilateral Trade Agreement while India monitors US trade measures, including sector-specific tariffs and additional duties imposed under the International Emergency Economic Powers Act (IEEPA), which affect a substantial share of 2024 merchandise exports. The government is consulting exporters and remains engaged on trade mitigation and negotiations. Separately, US changes to H-1B visa fees and a proposed weighted selection favoring higher skilled and paid applicants are noted; their impact is currently hypothetical, and India underscores the role of skilled talent mobility and ongoing engagement with US authorities.
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                                India-US trade engagement continues amid US tariffs and H 1B policy changes affecting exports and skilled mobility.

                                India and the US are negotiating a multi-sector Bilateral Trade Agreement while India monitors US trade measures, including sector-specific tariffs and additional duties imposed under the International Emergency Economic Powers Act (IEEPA), which affect a substantial share of 2024 merchandise exports. The government is consulting exporters and remains engaged on trade mitigation and negotiations. Separately, US changes to H-1B visa fees and a proposed weighted selection favoring higher skilled and paid applicants are noted; their impact is currently hypothetical, and India underscores the role of skilled talent mobility and ongoing engagement with US authorities.





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