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India and the US are set to finalise the legal text of their interim trade deal this month, with Commerce Minister Piyush Goyal indicating that the agreement could be signed by March and implemented in April.
India and the United States are moving closer to sealing their interim trade agreement
New Delhi: India and the United States are moving closer to sealing their interim trade agreement, with officials from both sides scheduled to finalise the legal text later this month. The development marks a significant step in strengthening bilateral economic ties between the two countries.
Union Commerce Minister Piyush Goyal said the agreement is expected to be signed by March and could become operational in April. Indian officials, led by chief negotiator Darpan Jain, are travelling to Washington to conclude discussions in line with the framework outlined earlier this month.
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As part of the negotiations, the United States is expected to reduce certain reciprocal tariffs imposed on Indian exports. Officials indicated that a 25 per cent punitive tariff linked to India’s Russian oil purchases has already been withdrawn. Discussions are also underway regarding the reduction of another 25 per cent reciprocal tariff on Indian merchandise exports to 18 per cent.
Commerce Secretary Rajesh Agrawal stated that both sides are working to translate the agreed framework into a formal legal agreement. The goal, he said, is to complete the drafting process and proceed with signing by March.
The interim agreement with the US is among several trade deals India plans to operationalise in 2026. Free trade agreements with the United Kingdom and Oman are also expected to come into effect in April, according to the minister. Meanwhile, a trade pact with New Zealand is likely to be implemented by September.
These agreements are part of India’s broader strategy to expand export markets, enhance supply chain resilience, and secure improved access for Indian goods and services.
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The proposed India-US pact is seen as an important milestone in deepening trade and investment flows. Policymakers on both sides have emphasised the need to provide stability and predictability to businesses amid shifting global trade dynamics.
If concluded as planned, the interim deal could lay the groundwork for a more comprehensive trade agreement in the future, reinforcing economic cooperation between New Delhi and Washington.
