The Federation of Indian Chambers of Commerce and Industry (FICCI) has voiced its disappointment at the imposition of 25% tariffs and secondary sanctions by the United States on Indian exports, which came into effect on Friday. FICCI hopes the measures are temporary and anticipates the finalization of a permanent trade deal between the two nations.
Harsh Vardhan Agarwal, the FICCI President, commented on the announcement, stating that the move is regrettable and will affect Indian exports. He expressed his hope that the higher tariffs would be a short-term measure, with a trade deal finalized soon.
Agarwal highlighted the strong relationship between India and the U.S., built on collaboration in technology, defense, energy, and advanced manufacturing. He expressed FICCI’s confidence that the ongoing detailed discussions will result in positive outcomes for both countries once the final trade agreement is reached.
India and the U.S. have been negotiating a bilateral trade agreement since the start of the year. A U.S. team is set to visit India in late August to further discuss the BTA. FICCI is optimistic that progress will be made in these discussions, with the goal of completing negotiations by September-October 2025.
The U.S. is a key market for Indian exporters, and the industry is keen to secure a long-term agreement. Simultaneously, India provides a large market for U.S. businesses.