The panel also recommended setting up a dedicated DGFT watch desk to monitor changes in US customs procedures
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A Parliamentary panel has recommended that India seek complete exemption from any future US tariff actions for key export sectors such as pharmaceuticals, smartphones and critical minerals as it negotiates the proposed Bilateral Trade Agreement (BTA) with Washington.The Rajya Sabha Department-related Standing Committee on Commerce, in its report on India-US trade relations, said the proposed BTA should be concluded at the earliest to provide greater predictability to businesses amid growing tariff uncertainty, while ensuring that India’s interests remain fully protected.“To ensure that the agreement is effective, the committee is of the view that the government negotiate for complete exemption for India’s key export products such as generic medicines, critical minerals and smartphones from any future unexpected US tariff increases,” it said.The committee, headed by AITC MP Dola Sen, submitted the report in Parliament on Thursday.The panel also recommended setting up a dedicated DGFT watch desk to monitor changes in US customs procedures and provide real-time alerts to exporters amid uncertainty over US trade policy.The report said the US remains India’s largest export destination and one of its most significant strategic economic partners. It also called for a time-bound roadmap to achieve the “Mission 500” target of expanding bilateral trade to $500 billion by 2030.The committee expressed concern over the expansion of Section 301 tariffs in the US, saying the move reflected a shift from temporary, broad-based tariffs to more targeted, country-specific measures. According to the report, the evolving tariff regime has increased uncertainty for Indian exporters, affected their price competitiveness and influenced sourcing decisions of US buyers.“Stakeholders from the industry apprised the committee that prolonged trade restrictions may weaken investment sentiment and adversely impact MSMEs engaged in value-added steel products,” it said.Published on August 6, 2026
