India-US Tariff Deal Hits 4 Final Stages, Global Trade Shifts
The week of November 23-29, 2025, was marked by tangible progress in India’s bilateral trade diplomacy and a growing global focus on aligning trade policy with climate action. For Indian exporters, the most critical news was the strong political commitment to finalize the first phase of the trade agreement with the United States, a move that promises to quickly relieve the burden of high punitive tariffs.
1. 🇺🇸 India-US Trade Framework Deal “Within the Calendar Year”
The most significant development was the near-daily confirmation from top Indian trade officials that the framework for a trade deal with the United States, aimed at resolving tariff issues, is on the brink of announcement.
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Crucial Timeline: On Friday, November 28, 2025, Commerce Secretary Rajesh Agrawal stated that India is “very optimistic and very hopeful” of reaching a solution on the first tranche of the Bilateral Trade Agreement (BTA) “within this calendar year.”
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Targeting Tariffs: This initial ‘framework deal’ is designed specifically to address the immediate and crippling issue of reciprocal tariffs, particularly the 50% punitive duties the US had levied on certain Indian goods since August. The Secretary stressed that eliminating these tariffs is the priority, stating, “What needs to come first is the framework trade deal, which is able to address the reciprocal tariffs.”
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Political Consensus: The high optimism signals that technical discussions have largely succeeded in ironing out most issues, and the final decision now rests at the “political level.” This momentum is driven by India’s recent strategic shifts in energy sourcing (reducing reliance on Russian oil), which has effectively cleared the main political hurdle that complicated the negotiations.
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Benefits for Exporters: The expected tariff relief will immediately restore the price competitiveness of Indian exports—including engineering goods, chemicals, and textiles—in the massive US market, directly benefiting companies like those associated with The Exporter Hub platform.
2. 🇷🇺 India Launches Formal FTA Talks with Eurasian Economic Union
Diversification remains a cornerstone of India’s trade policy. On November 26, 2025, India launched formal negotiations for a Free Trade Agreement (FTA) with the Russia-led Eurasian Economic Union (EAEU).
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The EAEU Bloc: The EAEU comprises five members: Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
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New Market Access: This initiative aims to open new, substantial markets for Indian businesses, particularly focusing on Micro, Small, and Medium Enterprises (MSMEs), farmers, and fishermen.
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Strategic Diversification: This move is a clear strategic decision to ensure Indian exporters have access to stable, high-potential markets, especially as trade with traditional partners faces volatility due to geopolitical tensions and sanctions. The agreement is being guided by an 18-month roadmap, with initial discussions focusing on reducing tariff and non-tariff barriers across the bloc.
3. 🌿 Global Trade Focus Shifts to Climate Action and Green Goods
The UN Trade and Development (UNCTAD) released its major Global Trade Update this week, asserting a powerful new theme: the alignment of global trade policy with the goals of the Paris Agreement.
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Trade as a Catalyst: UNCTAD’s report highlighted that trade policy must be used as a strategic driver of climate action. By reducing tariffs and non-tariff barriers on clean technologies, trade can accelerate the global transition to low-carbon economies.
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Rapid Growth in Green Trade: Trade in solar and wind energy technologies and components is confirmed to be growing significantly faster than other industrial goods. Furthermore, exports of environmentally preferable goods (like non-plastic substitutes and biodiversity products) are also seeing massive increases.
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Implications for Policy: The report argues that increasing and diversifying exports in low-carbon industries (an area where India has major potential) can generate the revenue necessary for developing nations to fund their Nationally Determined Contributions (NDCs) under the Paris Agreement. This signals a future where “green trade” standards will increasingly dictate market access.
4. 💻 WTO Approves Transparency Reforms in Government Procurement
The World Trade Organization (WTO) took a decisive step towards modernization this week by adopting new rules aimed at enhancing transparency in government procurement.
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Clarity and Trust: The decision, finalized by the WTO’s Government Procurement Committee on November 26, 2025, introduces clearer procedures for meeting reports and communication practices.
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Global Impact: This reform is intended to increase confidence in public procurement markets globally and reduce the informational barriers that often prevent smaller or developing-nation suppliers from competing for massive, high-value government contracts around the world. As an observer in the Committee, India’s participation aligns with its domestic push for greater transparency in its own digital tendering systems.
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