India’s trade minister, Piyush Goyal, said on Thursday that the first phase of the India-US trade deal is in the final stages of drafting. He also reiterated that New Delhi will move forward only if it secures an advantage over competing exporters.
The two countries agreed a framework for the deal in February, which cut the punitive tariff on most Indian goods to 18 per cent from 50 per cent. That levy was imposed in August last year, after an earlier round of talks broke down.
Goyal ties the deal to an edge over rivals
Goyal said the “first tranche” of the agreement would be finalised soon. A statement from his office quoted him at an event in New Delhi, where he described the legal drafting as the final step before implementation, once India gains a comparable or competitive advantage over its peers.
He was referring to India’s effort to secure a tariff advantage over economies such as Bangladesh, Vietnam and Indonesia in the US market. New Delhi wants its exporters to face duties no higher than those applied to competing countries.
Trade Secretary Rajesh Agrawal backed Goyal’s remarks. He said India expected to conclude and sign the agreement at the earliest opportunity, adding that New Delhi was seeking preferential market access and greater tariff stability.
Trade figures and stalled talks shape the timeline
India’s goods exports to the United States rose to $42.79 billion in April to August, up from $40.39 billion a year earlier. In the 2025-26 fiscal year, India recorded a trade surplus of nearly $34 billion with the United States.
Negotiations have run into hurdles, and officials on both sides have signalled that progress toward a final agreement has slowed. Neither side has publicly explained the reasons for the delay. Officials did point to one recent complication: a new US law that could allow tariffs of up to 100 per cent on Indian goods over New Delhi’s continued purchases of Russian oil.
The talks are taking place against a backdrop of increasingly strained ties between the two countries, which complicates efforts to steady their trade partnership.
Rubio’s visit to focus on energy and investment
US Secretary of State Marco Rubio will visit India and Uzbekistan from October 17 to 22. During the trip, he will meet government and business leaders to discuss energy cooperation, commercial investment and wider economic ties.
