Trade relations between the two countries have been strained due to the high tariffs. The US has imposed a steep 50% import duty on Indian goods entering American markets from August 27. It is affecting exports of labour-intensive sectors such as shrimp, textiles, leather and footwear.
India has termed these tariffs as unfair, unjustified and unreasonable.
So far, no new dates have been finalised for the sixth round of negotiations. The negotiations were stalled as the US is pressing for greater market access in politically sensitive areas such as agri and dairy sectors, which India cannot accept as it affects the livelihood of small and marginal farmers.
India on multiple occasions stated that it will not compromise the interests of farmers and cattle rearers.
The US is India’s largest trading partner. In 2024-25, the bilateral trade in goods stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports).
America is also the third-largest investor in India, with $76.26 billion FDI coming into India during April 2000 and June 2025. America accounts for 10% of the total FDI India has received during the period.
