Parliamentary Panel Urges Early India-US Trade Pact, Safeguards For Exporters

Parliamentary Panel Urges Early India-US Trade Pact, Safeguards For Exporters New Delhi, Aug 7 (KNN) The Parliamentary Standing Committee on Commerce has urged the government to conclude the proposed India-United States Bilateral Trade Agreement (BTA) at the earliest while ensuring that the interests of Indian exporters are adequately protected. Panel Seeks Early Conclusion Of India-US Trade Pact In a report tabled in Parliament, the committee said an early conclusion of the agreement would provide businesses in both countries with a stable and predictable trade environment without compromising India's export interests. The panel recommended that India seek complete exemption for key export products, including generic medicines, critical minerals and smartphones, from any future US tariff increases, reported Business Standard. Committee Recommends Stronger Trade Monitoring, Dispute Resolution The committee recommended that DGFT set up a watch desk to monitor US customs audits and alert exporters to regulatory changes. It also called for early Mutual Recognition Agreements covering professional services, pharmaceuticals and agriculture, a fast-track mechanism to resolve trade disputes with the US, and a regular review of currency volatility and logistics challenges to protect MSME-led exports. Services Trade Expands, But Imports Grow Faster The committee said India’s services exports to the US reached USD 51.2 billion, growing at a CAGR of 11.58 percent since 2020, while imports rose to USD 47.32 billion at a faster CAGR of 18.68 percent. Bilateral services trade more than doubled from USD 40.53 billion in 2014 to USD 98.52 billion in 2024, though imports are growing faster than exports. MSME Exports, Manufacturing Integration Need Greater Focus The panel urged the government to integrate Indian manufacturers into US supply chains and attract greater US investment in sectors such as electronics, semiconductors and clean energy. It recommended market-linked incentives for MSME textile and gems-and-jewellery exporters, tariff cuts on engineering goods and auto products under the BTA, and engagement with the US on Section 232 and 301 measures while ensuring barrier-free access to aluminium and copper scrap. Panel Flags Rising Tariffs, Export Competitiveness Concerns The report noted that Indian exporters continue to face challenges from exchange rate volatility, commodity price fluctuations and higher US tariffs, observing that tariffs on Indian goods remain at 18 percent, compared with 3 percent previously, affecting export competitiveness. (KNN Bureau)