Commerce and Industry Minister Piyush Goyal said the first phase of the India-US trade pact has been finalised and is now under legal drafting, with India seeking preferential market access and greater tariff stability before the agreement is operationalised.
New Delhi, October 15 — The first phase of the proposed India-US trade agreement has been finalised and is currently going through legal drafting, Commerce and Industry Minister Piyush Goyal said on Thursday.
Goyal said India hopes to complete the legal drafting soon and operationalise the first tranche once the country secures a competitive advantage over peer economies in the US market.
Speaking at the SRCC Centenary Conclave, he said the latest position was consistent with what the government had stated earlier and did not represent a change in stance.
Commerce Secretary Rajesh Agrawal said negotiations were moving in the right direction and that India and the US were in a “very good zone” to close and sign the deal at the earliest possible time.
He said the agreement would need to be signed after the broader US tariff framework is finalised, since preferential market access for Indian goods is a key part of the proposed pact.
India is seeking tariff treatment that gives its exporters an advantage comparable with, or better than, competing countries supplying the US market.
Agrawal said the legal drafting process is continuing and that the agreement is expected to address market access as well as broader tariff stability.
The negotiations are also taking place alongside US work on tariff measures under Section 301 and other trade actions. The Commerce Secretary said issues linked to excess industrial capacity and non-market policies would also be addressed as part of the broader framework.
He added that India would look for greater clarity and stability on tariffs, including any implications arising from US legislation related to countries importing Russian oil and gas.
Earlier this month, US Trade Representative Jamieson Greer said the two sides had identified the remaining sticking points but that an agreement was not yet imminent. Agrawal said the number of unresolved issues had reduced over time.
The framework for the first tranche of the agreement was announced in February, but subsequent changes in the US tariff landscape led to additional rounds of negotiation.
India’s exports to the US rose 0.92% to $87.3 billion in 2025-26, while imports increased 15.95% to $52.9 billion. India’s trade surplus with the US narrowed to $34.4 billion, from $40.89 billion a year earlier.
Goyal also said the India-European Union free trade agreement is expected to be signed in December and could come into force by February or March next year.
