New Delhi, Jan 29 (PTI) Ongoing negotiations for a trade agreement with the US are expected to conclude during the year, a development that could help reduce uncertainty on the external front, according to Economic Survey 2025-26.

For India, it said, the global conditions translate into external uncertainties rather than immediate macroeconomic stress.

Slower growth in key trading partners, tariff-induced disruptions to trade and volatility in capital flows could intermittently weigh on exports and investor sentiment, the Survey said.

"At the same time, ongoing trade negotiations with the United States are expected to conclude during the year, which could help reduce uncertainty on the external front," it said.

India and the US are negotiating a bilateral trade agreement since March last year. So far, six rounds of negotiations have been held. Talks are going slow as the Trump-administration has imposed a steep 50 per cent tariffs on Indian goods from August last year.

A delegation from the office of the US Trade Representative, led by Deputy US Trade Representative Ambassador Rick Switzer, was here in December 2025 for trade talks.

The visit of US officials marks their second trip since the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market due to the purchase of Russian crude oil. PTI RR TRB

Trade negotiations with the US expected to conclude this year, potentially reducing external uncertainty for India. Bilateral trade negotiations with the United States are expected to conclude within the year and may reduce external uncertainty. Negotiations have proceeded through multiple rounds but have been slowed by significant US tariff measures-amounting to a 50 percent levy including an additional penalty tied to crude oil purchases-that have intermittently disrupted trade and affected export prospects amid volatile capital flows.