Rajya Sabha Committee 200th Report on India-US Trade Relations
The Department Related Parliamentary Standing Committee on Commerce, chaired by Ms. Dola Sen, presented its 200th Report on 'Evaluation of India-US Trade Relations' to both Houses of Parliament on 6th August 2026. The report comprehensively evaluates bilateral trade relations, identifies key challenges from US tariff measures affecting various economic sectors, and provides extensive recommendations to address concerns across multiple industries.
Current Trade Scenario and Challenges
India's services exports to the United States stood at USD 51.20 billion, growing at a CAGR of 11.58% since 2020, while services imports reached USD 47.32 billion with a CAGR of 18.68%. Total services trade with the US has more than doubled from USD 40.53 billion in 2014 to USD 98.52 billion in 2024. The Committee notes with concern that foreign taxes on Indian goods are changing too fast and unpredictably, with the US tariff currently standing at 18% compared to the earlier rate of 3%, significantly impacting India's exports and economy. Currency volatility with 1 USD at approximately 95 INR as of August 2026 adds to export difficulties.
Sector-Specific Analysis and Recommendations
The report provides detailed sectoral analysis with specific recommendations. For gems and jewellery, the Committee recommends addressing the 48% crash in exports caused by 2025 tariff measures and securing tariff parity with global competitors like Switzerland, Canada, and Mexico. In textiles, the report emphasizes diversification toward technical textiles, man-made fibre products, and sustainable textiles, recommending specialized MMF manufacturing clusters within PM MITRA parks.
For marine products, the Committee recommends mandatory rollout of ICAR-CIFT developed Turtle Excluder Devices across all mechanized trawlers to obtain US NOAA certification and overturn the ban on Indian wild-caught shrimp. The report also suggests establishing pre-clearance protocols with US customs and FDA for agricultural shipments to reduce rejection rates at American borders.
In automotive and engineering sectors, the Committee recommends promoting technology upgradation, automation, and R&D to minimize structural inefficiencies and reduce production costs. For chemicals, the report suggests leveraging India's ₹7,580 crore trade surplus with the US as a strategic tool to negotiate reduced tariffs on petrochemicals and agrochemicals.
Institutional Framework and Strategic Recommendations
The Committee recommends concluding the proposed Bilateral Trade Agreement at the earliest while ensuring India's interests are protected, with complete exemption for key export products including generic medicines, critical minerals, and smartphones from future unexpected US tariff increases. The report suggests establishing a dedicated bilateral institutional mechanism with US trade authorities to proactively resolve trade frictions before they escalate.
The Committee recommends creating targeted strategies to boost high-value knowledge exports in artificial intelligence, digital health, and engineering research. It emphasizes leveraging global 'friend-shoring' trends to integrate Indian manufacturers into critical US supply chains, particularly in electronics, semiconductors, and clean energy. The report also calls for establishing specialized testing facilities aligned with USFDA guidelines for pharmaceuticals and organic chemicals.
MSME Support and Export Infrastructure
The report extensively addresses MSME challenges, recommending dedicated Export Resilience Schemes providing financial subsidies, lower interest rates on export credits, and technical guidance. It suggests creating emergency relief programs under RoSCTL to compensate MSME textile exporters for price reductions demanded by US buyers. The Committee recommends establishing government-subsidized textile warehousing hubs within major US shipping entry points and automated customs clearance zones dedicated to US-bound trade.
For financial support, the report recommends state-backed export invoice discounting windows, easier access to affordable credit, and specialized technology-upgradation grants for labor-intensive sectors. The Committee emphasizes the need for advanced training centers focused on Industry 4.0 technologies including smart automation, robotics, and electric vehicle component manufacturing.
Emerging Areas and Future Cooperation
The report identifies emerging areas of cooperation including digital technologies, artificial intelligence, quantum technologies, and innovation ecosystems under the Initiative on Critical and Emerging Technologies (iCET) and US-India COMPACT framework. It recommends dedicated initiatives to enable MSME participation in digital technology partnerships and joint capacity-building programs for advanced digital skill development.