New Delhi, Aug 6 (PTI) A parliamentary panel has suggested the government to conclude the proposed bilateral trade agreement (BTA) with the US at the earliest while ensuring that India's interests are adequately protected.

A report of the department related parliamentary standing committee on commerce on 'Evaluation of India-US Trade Relations', said that the government should negotiate for complete exemption for India's key export products such as generic medicines, critical minerals and smartphones from any future unexpected US tariff increases.

It suggested that the Department of Commerce should also prepare a time-bound roadmap to achieve the objectives of the Mission 500 initiative by promoting trade in goods and services, encouraging investment, enhancing cooperation in critical technologies, improving supply chain and addressing both tariff and non-tariff barriers faced by Indian exporters.

The two countries have set a goal to more than double total bilateral trade to USD 500 billion by 2030.

"The Committee recommends that the government conclude the proposed Bilateral Trade Agreement at the earliest while ensuring that India's interests are adequately protected," it said, adding that the move would benefit businesses in both countries as it would provide a stable and predictable trade environment.

It added that the pact should focus on reducing tariffs on engineering goods, auto components and other products related to automotive sector as the removal of additional US tariffs on Indian exporters will improve India's competitiveness.

Recommending protection to vulnerable small-scale industries from volatile tariff actions, it said the department must actively deploy localised financial buffers and export credit assistance programmes.

Further, it asked for setting up of a special, fast-acting watch desk to track US customs audits in real time, so that Indian exporters can get instant warnings about any new import rules.

It also recommended extension of quick technical and financial support to small businesses to upgrade their paperwork so that shipments do not get stuck or delayed at US borders.

The department, it said, should closely monitor developments affecting India's trade and commerce, including tariff measures and non-tariff barriers in the United States and timely policy support be provided to sectors that face adverse impact due to tariff measures so that export growth is not impacted.

The committee recommended formulation of a targeted strategy to boost high-value knowledge exports such as artificial intelligence, digital health and engineering research to maintain India's long-term competitive edge in services.

It asked for actively leveraging global 'friend-shoring' trends to deeply integrate Indian manufacturers into critical US supply chains, particularly in electronics, semiconductors and clean energy.

Besides, targeted investment promotion strategies must be deployed to attract US foreign direct investment (FDI) into the country's manufacturing sector.

To tackle the challenge where Indian components cannot be immediately diverted to new markets due to rigid, buyer-specific technical specifications, it suggested to set up a National Fund.

This fund should provide fiscal incentives and matching grants to Indian suppliers to offset the high capital costs associated with product redesign, fresh tooling investments, prototype development and obtaining foreign technical certifications required to enter new global supply chains.

Further, the panel suggested initiation of bilateral trade dialogues to specifically contest the arbitrary inflation of anti-dumping and countervailing duties to secure a predictable tariff framework.

It asked for strengthening cooperation in sectors such as semiconductors, clean energy, pharma, critical minerals, transfer of emerging technologies, chemicals, petrochemicals, gems and jewellery.

It added that the high tariff regime in the US continues to impact India's exports and the economy.

"The Committee recommends that we shall rethink and review our India-US trade relations considering these factors meticulously and there should also be a level playing field in these respects," the report said.

The committee, it said, suggested redressal of regulatory bottlenecks, simplification of investment procedures, ensuring policy stability, and expediting the mutually beneficial BTA to enhance investor confidence and unlock the full potential of bilateral investment cooperation. PTI RR HVA