India Seeks Exporter Inputs to Expand US Market Access
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India Seeks Exporter Inputs to Expand US Market Access

India’s Commerce Department has sought detailed information from exporters on products that the United States does not produce domestically but imports from India, as the government looks to identify opportunities for greater market access.

The move comes ahead of Commerce and Industry Minister Piyush Goyal’s planned visit to the US later this month to attend the G20 Trade Ministers’ Meeting. The meeting, scheduled from September 30 to October 1 under the US presidency of the G20, comes as India and the US continue negotiations on a bilateral trade agreement (BTA).

Government Seeks Sector-Specific Export Information

At a meeting on India-US trade performance, exporters and industry representatives highlighted concerns over lower order volumes from American customers and uncertainty surrounding US trade measures.

The Commerce Department is seeking information on products for which India could potentially gain a stronger position in the US market, particularly where American domestic production is limited or unavailable.

Industry representatives indicated that US trade actions are already having an impact on sectors including leather and footwear, textiles, marine products and polished diamonds.

Exporters also noted that American buyers are being cautious with order volumes while diversifying sourcing destinations amid continuing tariff uncertainties.

Forced Labour Rules Add Compliance Pressure

Another concern raised during the meeting was the scrutiny by US Customs authorities regarding products manufactured using forced labour.

The issue is particularly significant for export-oriented industries that supply the US market, as companies face increasing requirements around supply-chain transparency, sourcing practices and compliance.

Industry stakeholders have urged the government to engage with US authorities on these concerns and work towards reducing trade-related uncertainties for Indian exporters.

Safeguard Measures on Quartz Surface Products

The industry also flagged safeguard measures imposed by the US on quartz surface products.

Exporters have called upon the Commerce and Industry Ministry to take up the issue with American authorities as part of ongoing discussions on bilateral trade and market access.

The concerns come as India seeks to strengthen its export position in the US while navigating a more complex global trade environment.

Bilateral Trade Agreement Remains a Key Focus

The discussions assume significance as India and the US continue negotiations on a bilateral trade agreement.

According to the report, the first tranche of the agreement is expected to come into force once Washington ensures that India secures a comparative advantage over competing exporters.

The government is also monitoring US measures linked to India's imports of Russian oil and gas, as well as other trade-related investigations and proposed tariff actions.

US Trade Measures Raise Concerns for Indian Exporters

Industry representatives raised concerns over the US Section 301 investigation related to excess capacity and proposed measures connected with countries purchasing Russian oil.

The US has also identified India among countries allegedly associated with a "shadow trans-shipment network", involving the movement of Chinese goods to bypass American tariffs. The US has announced plans to use artificial intelligence to identify and address such shipments.

These developments could add further compliance and market-access challenges for Indian exporters.

India's US Trade Performance

India's exports to the United States declined marginally by 0.05% to USD 25.48 billion during the first quarter of FY27, while imports from the US increased by 23.82% to USD 16.6 billion, according to the figures cited in the report.

The trade figures underline the importance of maintaining market access and addressing tariff and regulatory concerns as India works to strengthen its position in the US market.

Textile Sector in Focus

For India's textile and apparel industry, the developments are particularly relevant as the US remains an important export destination.

Greater clarity on tariffs, forced-labour compliance, sourcing requirements and market-access conditions could influence export strategies for Indian textile manufacturers and exporters.

The government's move to gather sector-specific information from exporters could help identify products and industries where India can strengthen its competitiveness and secure additional opportunities in the US market.

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