Why has the India–US trade deal not been signed yet?
India and the US have agreed to reduce tariffs from 50% to 18% following talks between PM Modi and President Trump. While the deal promises cheaper goods and sectoral protection, its official signing and detailed terms are still awaited.
New Delhi: Both India and the US have agreed on a trade deal in which the tariffs levied on India would be lowered from 50% to 18%. The deal was finalized after Prime Minister Narendra Modi and President Donald Trump spoke on the phone on February 2, 2026. However, the question remains when the deal will be officially signed and when the joint statement will be issued, which has been inordinately delayed since the tariffs were levied on India.
Another week?
To this, the Minister of Commerce and Industry replied affirmatively and said that both countries could officially issue a joint statement in the next three to five days. He also shared that the draft of the agreement is being finalized and will hopefully be signed by the middle of March.
He added that the proposed deal would be beneficial for both countries, as their economies are complementary.
He further said that talks on the Bilateral Trade Agreement (BTA) have been ongoing since Prime Minister Modi’s 2025 visit to the United States. Replying to the questions being asked in the Lok Sabha, he replied that for the last year, both sides have been negotiating to safeguard important and sensitive sectors.
What Did PM Modi Say?
Prime Minister Modi wrote on social media platform X, “It was great to speak to my dear friend President Trump today. Happy to know that tariffs on ‘Made in India’ products have now been reduced to 18 percent. On behalf of the 1.4 billion people of India, thank you President Trump for this wonderful announcement.”
Trump and Modi Hold High-Level Conversation
Agriculture Sector Protected
Commerce and Industry Minister Piyush Goyal stated that India has ensured strong protection for sensitive sectors, particularly agriculture and dairy, during the trade negotiations. Speaking in the Lok Sabha amid opposition protests, he said that while some sectors were sensitive from the US perspective, both sides succeeded in finalizing several areas of the bilateral trade agreement after nearly a year of talks.
What Will Become Cheaper?
The reduction in reciprocal tariffs could make several goods cheaper in India. These include technology products such as laptops, mobile gadgets, and consumer electronics, along with processed food, packaged goods, and household appliances.
Lower import duties on agricultural items like pulses, dairy products, and processed foods may also help ease food inflation. However, detailed terms of the agreement are still awaited from the government.
