India-US Trade Deal First Phase Finalised, Legal Drafting Underway: Piyush Goyal

Commerce Minister Says Agreement Could Be Signed by February or March 2027, While Further Negotiations Continue

India and the United States have finalised the first phase of their bilateral trade agreement, and legal drafting is underway, Commerce and Industry Minister Piyush Goyal said on October 15. The minister expressed hope that the legal draft would be completed soon, allowing the agreement to be operationalised and provide reciprocal trade advantages to both countries.

However, he indicated that further discussions remain necessary on certain provisions, including market access and the treatment of specific products under US trade measures.

First Phase Finalised, Legal Drafting in Progress

Goyal said the first phase of the India-US trade agreement had been finalised and that the legal drafting process was underway. He said he hoped the agreement could be operationalised soon, enabling both countries to benefit from the proposed trade arrangements.

The minister also said the free trade agreement between India and the European Union was expected to be signed in February or March next year, referring to 2027.

According to Goyal, Commerce Secretary Rajesh Agrawal had indicated that negotiations on the first phase of the India-US trade pact were moving in the right direction.

Market Access and Tariff Issues Remain Under Discussion

Goyal said the agreement was expected to provide India with advantages comparable to those available to competing countries. However, the two sides still need to work through provisions relating to market access and US trade measures.

Commerce Secretary Rajesh Agrawal said there was a possibility of concluding the deal at the earliest opportunity, while acknowledging that some work remained.

He said the agreement could help India secure improved market access and preferential treatment in the United States. He also noted that the US tariff framework and the use of Section 301 investigations could affect the final terms.

Section 301 Investigations and Trade Measures

Agrawal said the United States was conducting Section 301 investigations into several economies, including India. These investigations relate to trade practices and could influence the treatment of products in the US market.

He said the outcomes of the investigations could have implications for market access and tariff arrangements. The two sides are therefore continuing discussions on how these issues will be addressed in the agreement.

Goyal said the agreement could help India obtain advantages comparable to those enjoyed by other countries, while negotiations continue on outstanding matters.

Timeline for Signing Remains Dependent on Further Work

Goyal expressed hope that the legal drafting would be completed soon and that the agreement could be operationalised in the near term. The first phase has been finalised, but further work on the legal text and related provisions remains necessary before the agreement can be implemented.

The developments come as India continues trade negotiations with several partners, including the European Union, with the aim of expanding market access and strengthening trade relationships.