India’s business community, represented by the Federation of Indian Chambers of Commerce and Industry (FICCI), has reacted with concern to the U.S. decision to implement a 25% tariff and secondary sanctions on Indian exports. FICCI hopes that these measures will be temporary and that a permanent trade agreement will soon be established between the two countries.
FICCI President Harsh Vardhan Agarwal described the U.S. move as unfortunate and predicted its negative impact on Indian exports. He expressed his hope that the higher tariffs will be a short-term issue, with a permanent trade deal finalized in the near future.
Agarwal emphasized the longstanding partnership between India and the U.S., which is reinforced through strong collaboration in various sectors like technology, defense, energy, and advanced manufacturing. He anticipates positive results for both nations upon the finalization of the trade agreement, following the current detailed discussions.
India has been actively negotiating a bilateral trade agreement with the U.S. since the beginning of the year. A U.S. team will visit India in the latter half of August to continue discussions on the BTA, and FICCI hopes for substantial progress, targeting the completion of negotiations by September-October 2025.
The U.S. is a vital market for Indian exporters, and the industry desires a long-term, permanent agreement. India also offers a significant market for U.S. businesses.