Even as India locks in a landmark Free Trade Agreement with the United Kingdom, concerns are growing that it may risk isolation in its trade negotiations with the United States. Dr. Mukesh Aghi, President and CEO of the US-India Strategic Partnership Forum (USISPF), has warned that with several countries already signing deals with Washington, time is running out for India to move forward.
“You don’t want India getting isolated while the rest of the world signs deals,” Aghi told Business Today TV, pointing to recent agreements between the US and Japan, the Philippines, Cambodia, and Vietnam. He also noted that the European Union is close to concluding its own deal and that China and the US are scheduled to meet in Scandinavia next week.
Unlike the UK-India FTA—which eliminates tariffs on 99% of Indian exports and aims to double bilateral trade in five years—the US-India trade arrangement is still in its first phase, focused primarily on tariffs. “This is not a full comprehensive deal like what India has signed with the UK. This is stage one,” Aghi explained.
Under current US policy, Indian exports face a 10% tariff, which is set to increase to 26% after August 1 unless a new agreement is reached. “That would have some kind of impact, especially when you have US companies looking at India as a staging ground to do manufacturing and export to the US,” Aghi noted.
He added that the Indian government has already submitted its proposal, which is currently awaiting action in Washington. “India has put its best foot forward… it is on the desk of the president,” he said, suggesting that internal deliberations within the US administration are slowing progress.
Agriculture and dairy remain sensitive areas for India, but Aghi urged flexibility. “You can protect areas like rice, wheat, and maize, but also look at sectors like soybean or lentils, where India is a major importer and doesn’t compete with the US.”
Beyond tariff negotiations, Aghi emphasized that the deal could enhance India’s attractiveness for global supply chains and deepen investment ties. “Indian companies invested over $40 billion in the US last year. They plan to invest $500 billion over the next five years.”
With a US negotiating team expected in India next week, Aghi said a strong political signal is now essential. “The president loves headline news… a deal that talks about taking this partnership to a trillion dollars would be a great headline,” he added.
