India-US Trade Framework Deal Expected This Calendar Year; FDI in Services and Manufacturing Gaining Momentum

November 28, 2025

Government Secretaries at FICCI's 98th AGM Chart Policy Roadmap for Sustaining High Growth Amid Global Trade Challenges

New Delhi, November 28, 2025: Senior Government of India secretaries addressing the panel discussion of FICCI's 98th Annual General Meeting today outlined India's strategic policy priorities for sustaining high economic growth, with Commerce Secretary Shri Rajesh Agrawal expressing optimism about concluding a framework trade deal with the United States within this calendar year to address reciprocal tariff challenges.

Speaking at the panel discussion titled 'From Challenges to Competitiveness: Policy Priorities for Sustaining High Growth,' the secretaries emphasized India's resilience in navigating global trade headwinds while accelerating industrial transformation across critical sectors.

Commerce Secretary Shri Rajesh Agrawal provided detailed insights into the ongoing negotiations with the United States, highlighting two parallel tracks currently underway:

"We are engaged in not only negotiating a bilateral trade agreement, which will take considerable time given its wide-ranging nature, but also working on a framework trade deal to address the reciprocal tariff challenge that Indian exporters face today," said Shri Agrawal. "These are two separate parallel negotiations, but one will feed into the other. What needs to come first is the framework trade deal."

The Commerce Secretary expressing confidence regarding finalizing of the framework agreement addressing reciprocal tariffs said, "We are very optimistic and hopeful that we should find a solution within this calendar year. We have engaged deeply with US teams over the last few months and have tried to iron out most issues. It is now only a matter of time to find the right landing zone for both countries," he added.

The Commerce Secretary highlighted India's export performance in the face of global trade headwinds. "For the first seven months of this year, our merchandise exports stood at $491 billion compared to $469 billion last year, demonstrating the resilience of Indian industry."

Highlighting the ability of Indian exporters to diversify markets, Shri Agrawal noted that India's shrimp exports to the EU have increased by 60%. "This shows the strength of Indian industry in finding new opportunities and diversifying trade to make export supply chains more resilient," he said.

On the India-EU trade agreement, Shri Agrawal indicated that negotiations are advancing, with the India-EU summit scheduled for January next year expected to provide further momentum to discussions.

The Commerce Secretary also highlighted a groundbreaking achievement in India's FTA strategy. "For the first time, India is trying to get FDI commitments through FTA negotiations, similar to the trade agreement with EFTA (European Free Trade Association)," he revealed, marking a significant innovation in India's approach to trade agreements that goes beyond traditional market access provisions.

Shri Rajesh Kumar Singh, Secretary, Ministry of Defence, outlined India's defence production achievements and future roadmap, emphasizing the policy of strategic autonomy.

"Last year, out of ₹2,00,000 crores of contract signings, ₹1.33 lakh crores—almost 88%—were with domestic suppliers, both PSUs and private sector. This trend will continue and will never go below 75%," he stated.

The Defence Secretary announced that exports from the defence sector exceeded ₹21,000 crores in the last financial year, with significant contribution from the private sector. "Although domestic production is 75% public sector and 25% private sector, when it comes to exports, the ratio reverses—60% of our exports are done by the private sector," he revealed.

On India-Russia defence cooperation, Shri Singh clarified: "We have legacy equipment from Russia requiring maintenance and support. Our defence cooperation with Russia is of long standing—they've been our friends through fair and foul weather. We follow a policy of strategic autonomy and are diversifying suppliers, but we will continue cooperation where needed."

Regarding defence budget expectations, he indicated the ministry would seek "something closer to 20% increase" given the geopolitical environment.

Shri Devesh Chaturvedi, Secretary, Ministry of Agriculture & Farmers Welfare, projected a bumper harvest for 2024-25, which he said would help maintain stable food inflation.

"We are very optimistic that food inflation will remain stable over the next six months, and we have seen it become negative at times," he said. He highlighted the positive impact of recent GST reforms on agricultural mechanization, noting that GST reductions have been passed on to farmers, boosting demand for farm equipment.

India is strengthening its agricultural export capabilities by meeting international food safety standards, with focused attention on Maximum Residue Limit compliance and pesticide management throughout the supply chain. The Agriculture Secretary announced that the Seed Bill is currently under stakeholder consultation, while the Pesticide Bill, in attempt to modernize legislation that were last revised in the 1960s, will soon be released for consultation to align with contemporary requirements.

Shri A.P. Das Joshi, Secretary, Ministry of Food Processing Industries, emphasized India's growing advantage in the food processing sector, particularly highlighting labour cost differentials.

"We have 100% FDI permitted through the direct route and are receiving significant interest from foreign investors," he said. The share of processed food in India's total agri-exports has grown substantially and continues to gain momentum, reflecting the sector's increasing competitiveness.

The Secretary noted strong synergies between the agriculture and food processing sectors, with the government's Vision 2047 aiming to make India the "food basket of the world" with 10% share of global agricultural exports.

On the broader FDI landscape, Commerce Secretary Agrawal highlighted India's strengths: "FDI in services sector remains a key strength given our demographic advantage. With India being one of the fastest-growing major economies with a rising middle class, we expect significant manufacturing FDI as global investors recognize that this demand can only be met by producing indigenously."

He added that reviews of investment policies, including Press Note 3 concerning investments from neighbouring countries, are underway to further enhance the investment climate.

The secretaries' presentations underscored India's multi-pronged approach to economic growth—leveraging digital public infrastructure, strengthening manufacturing capabilities, diversifying trade partnerships, and maintaining strategic autonomy in defense while pursuing aggressive indigenization.

As India stands at this defining moment in its economic journey, the alignment between government policy and industry priorities outlined at FICCI's 98th AGM provides a clear roadmap for sustaining high growth despite global challenges.

India-US Trade Framework Deal Expected This Calendar Year; FDI in Services and Manufacturing Gaining Momentum

FICCI Media Division

Releases in the Event:

FICCI's 98th Annual General Meeting and Annual Convention

Nov 28 - Nov 29, 2025 Bharat Mandapam, New Delhi

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