Why in News?
The Department Related Parliamentary Standing Committee on Commerce, chaired by Dola Sen, presented its 200th Report on “Evaluation of India–US Trade Relations” to both Houses of Parliament. The Committee examined the current state of India–US trade and suggested measures to strengthen India’s export competitiveness and resolve tariff-related issues.
Importance
- Strengthens Parliamentary oversight of India’s trade policy through the Standing Committee mechanism.
- Highlights the need to improve India’s export competitiveness and trade diversification.
- Addresses vulnerabilities arising from tariff barriers and dependence on major export markets.
- Connects economic cooperation with the broader India–US strategic, technology and critical-minerals partnership.
Key Highlights
- Services Trade: India–US services trade increased from USD 40.53 billion in 2014 to USD 98.52 billion in 2024, more than doubling in a decade.
- Services Exports: India’s services exports to the US stood at USD 51.20 billion.
- Services Imports: India’s services imports from the US stood at USD 47.32 billion.
- Tariffs: The report noted a US tariff of 18% on Indian goods, compared with the earlier rate of 3%.
- Gems & Jewellery: Exports declined by 48% following tariff measures introduced in 2025.
- Chemicals: India recorded a ₹7,580 crore trade surplus with the US in chemicals.
- Essential Oils: India accounts for around 85% of the global market in this sector.
Major Recommendations
- Bilateral Trade Agreement: The Committee recommended the early conclusion of the proposed India–US Bilateral Trade Agreement (BTA).
- Engineering & Automobiles: Reduce tariff barriers on engineering goods and auto components and introduce an MSME Export Resilience Scheme.
- Gems & Jewellery: Seek tariff parity with countries such as Switzerland, Canada and Mexico.
- Marine Products: Roll out Turtle Excluder Devices (TEDs) to meet NOAA requirements and address restrictions on Indian wild-caught shrimp.
- Steel, Aluminium & Copper: Address Section 232 tariffs and Section 301 investigations.
Static Fact
The Department-Related Parliamentary Standing Committee on Commerce functions under the Rajya Sabha's administrative control (one of the 8 DRSCs serviced by Rajya Sabha; the remaining 16 are serviced by Lok Sabha).
