- India-US trade deal first phase finalized.
- Legal drafting underway for bilateral trade agreement.
- Operationalization expected after India gains competitive advantage.
The first phase of the India-US trade deal has been finalised and is undergoing legal drafting, with both sides negotiating to secure lower tariffs and greater competitive advantages. Union Commerce Minister Piyush Goyal made the remarks while addressing the SRCC Centenary Conclave in New Delhi on Thursday. He expressed hope that the deal would be concluded soon and operationalised once India secured a comparable or competitive advantage over its peer countries.
Goyal was referring to New Delhi's efforts to secure a tariff advantage for Indian exporters over competing economies such as Bangladesh, Vietnam and Indonesia in the US market.
"The US bilateral trade agreement first tranche has been finalised. It's going through final contours, the legal drafting, and we hope to be able to finalise that soon and operationalise that once we get comparable advantage or competitive advantage over our peer countries," Goyal said amid a flurry of questions over the trade deal.
India-US trade in limbo
New Delhi and Washington agreed to a framework for the deal in February which brought down to 18 per cent from 50 per cent the punitive tariff on most Indian goods imposed in August last year after a previous round of talks collapsed. Since then, negotiations have run into hurdles, with officials on both sides signalling that efforts to reach a final agreement have slowed.
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India wants to ensure its exporters face tariffs no higher than those imposed on competing economies. Earlier today, Trade Secretary Rajesh Agrawal echoed Goyal's comments. "We anticipate concluding and signing the trade deal at the earliest possible time," Agrawal said, adding that India was seeking preferential market access and greater tariff stability under the proposed agreement.
India's goods exports to the United States rose to USD 42.79 billion in April-August from USD 40.39 billion a year earlier. In the fiscal year 2025/26, India recorded a trade surplus of nearly USD 34 billion with the United States.
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Neither side has publicly detailed the reasons for the delay, but one recent complication has been a new US law that could pave the way for tariffs of up to 100 per cent on Indian goods because of New Delhi's continued purchases of Russian oil.
(With inputs from Reuters)