Democrats’ strong performance in the US midterm elections could give India greater negotiating flexibility in its proposed bilateral trade agreement with the United States. With Democrats gaining control of both the House and Senate, increased congressional scrutiny of President Donald Trump’s tariff policies may help reduce uncertainty surrounding trade relations and market access.

Trade experts believe the changed political landscape could allow India to negotiate a more balanced agreement while protecting its domestic economic interests. Greater clarity on US tariff policies could also create opportunities for Indian exporters, particularly in the textile and apparel sectors.

However, experts expect the existing 18% reciprocal tariff arrangement to remain unchanged in the immediate term, although a broader review of tariffs remains possible. Industry representatives have also highlighted the importance of stable and predictable trade policies, especially for MSMEs planning export orders and shipments.

India’s exports to the US increased 11% year-on-year to $50.8 billion during the first half of FY27, while imports rose 26% to $32.3 billion. The evolving political and trade environment could play an important role in shaping future India-US economic relations and export opportunities.