HighLights
  1. Piyush Goyal said the first tranche can move ahead once India regains a competitive edge.
  2. The agreement aims to provide Indian exporters greater access to the American market
  3. Final rollout depends on restoring market advantage

Union Commerce and Industry Minister Piyush Goyal on Wednesday gave an update on the India-US trade deal talks. He stated that the first phase of the bilateral agreement is ready to move ahead once India’s competitive position in the US market is restored. Goyal said the deal will help Indian exporters gain greater access to the American market.

First Tranche Of India-US Trade Deal

Speaking to reporters, Goyal said the first tranche of the India-US bilateral trade agreement, announced by Prime Minister Narendra Modi and US President Donald Trump on February 3, will come into effect once the US ensures that India receives a competitive advantage compared with neighbouring countries and the ASEAN region.

He said restoring this advantage was the foundation of the first phase of the trade agreement. “What we have finalised with the US as the first tranche of the bilateral trade agreement, which was announced by our leaders on the 3rd of February, will come into operation as soon as the United States is able to ensure that we get a comparative advantage over our competitors, the countries in our neighbourhood, the ASEAN region,” Goyal said.

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Goyal emphasised that India will continue to focus on increasing exports and using the opportunities available in the large US market. The minister added, “That was the basis of our first tranche of the BTA. And once that basis is reestablished, the US BTA will be ready up and above... India will continue to grow its exports and continue to leverage the large US opportunity.”

India’s Expanding Trade Opportunities Through FTAs

Earlier, speaking at JRD Tata Memorial Lecture, Goyal highlighted India’s free trade agreements (FTAs) with developed economies. He said the agreements provide access to larger and more prosperous markets, adding that these 38 developed economies together represent a combined GDP of around USD 60 trillion. He also highlighted that FTAs have expanded India’s preferential access to markets worth around USD 70 trillion.

India’s Growth Despite Global Challenges

Goyal further said India’s economy recorded strong growth despite global uncertainties, including conflicts and trade disruptions. He said India’s economy grew 7.7 per cent last year and 7.8 per cent in the last quarter, making it the fastest-growing major economy. He noted that Indian exports continued to grow despite challenges, including high tariffs faced by some exports to the US during the previous year.

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