India-USA Relations and Trade

Trade between India and the United States has grown about thirty-fold since the early 1990s. This page tells that story, then looks at the 200th Parliamentary report of 6 August 2026 and the new US duty of July 2026.

Keep three questions in mind. How big has the trade become? What are the BTA and Mission 500? And what did the committee and Washington decide in 2026?

1How big has India–US trade become?

In the early 1990s, India and the US traded only about $7.3 billion a year. India had just begun opening its economy.

Today the picture is very different. By 2024, trade in goods and services had reached about $210 billion. The US had become India’s largest trading partner.

It was not always so. China held the top spot from 2013-14 to 2017-18. The US overtook it later.

The road was not smooth either. In 2019, the US withdrew India’s GSP benefits. The Generalized System of Preferences gave duty-free entry to many goods. The move hit about $5.6 billion of Indian exports.

• Early 1990s: about $7.3 billion.
• 2024: about $210 billion, the US is the top partner.
• 2019: GSP withdrawn, about $5.6 billion of exports hit.

2What is the Bilateral Trade Agreement and Mission 500?

In February 2025, India and the US set out to negotiate a Bilateral Trade Agreement, or BTA. It aims to widen market access and lower tariff and non-tariff barriers.

They also set a goal called Mission 500. The target is $500 billion of bilateral trade by 2030.

A framework for an interim agreement followed in early February 2026. It was meant as a stepping stone to the full BTA.

• BTA talks launched: February 2025.
• Mission 500: $500 billion by 2030.
• Interim framework: February 2026.

3What did the 200th Parliamentary report say?

On 6 August 2026, a Parliamentary Standing Committee on Commerce tabled its 200th Report. The title was “Evaluation of India-US Trade Relations”. Dola Sen chairs the Committee. (Source: PIB)

It asked the government to conclude the BTA at the earliest, while protecting India’s interests.

It also suggested seeking exemptions for generic medicines, smartphones and critical minerals from future US tariff hikes. (Source: DD India)

It called for support to sectors like engineering, electronics, pharma, textiles and agriculture, and for more help to MSMEs.

• Report: 200th, tabled 6 August 2026.
• Chair: Dola Sen.
• Exemptions sought: generic medicines, smartphones, critical minerals.

4What is the Section 301 duty of July 2026?

The US announced final Section 301 measures on forced labour on 23 July 2026. They covered 60 economies.

India got an additional 10% duty. The US had first proposed 12.5% on 2 June 2026.

India was placed in a lower tariff tier. About 45% of its exports to the US stay outside the duty. (Source: PIB)

This is a different action from the 2019 GSP withdrawal. The two are seven years apart.

• Announced: 23 July 2026.
• Duty on India: 10%, down from 12.5% proposed.
• Outside the duty: about 45% of exports.

5What are the exam traps?

• US became top partner after China’s run till 2017-18.
• GSP = 2019. Section 301 = 2026.
• Mission 500 = $500 billion by 2030.
• 200th report chair = Dola Sen.
• Section 301 rate = 10%, not the 12.5% first proposed.