Union Commerce and Industry Minister Piyush Goyal on Thursday said that the first phase of the India–US bilateral trade agreement is ready. A joint statement from both countries is expected within the next four to five days, while the formal legal agreement is likely to be signed by mid-March.
Once the joint statement is released, the United States is expected to issue an executive order reducing tariffs to 18 per cent, Goyal said.
US President Donald Trump announced that India and the US have reached a trade deal under which the United States will reduce its reciprocal tariff on Indian goods from 25 percent to 18 percent. The move comes after the US had imposed a steep 50 percent tariff on Indian goods entering its markets from August 27, 2025
Tariff cuts to follow legal agreement
Explaining the technical process, Commerce Secretary Rajesh Agrawal said the two countries follow different tariff systems. While US tariffs can be changed through executive orders, India’s tariffs follow the Most Favoured Nation (MFN) system and can only be reduced after the legal agreement is formally signed.
He clarified that India’s tariff reductions will come into effect only after the final legal framework of the trade deal is completed.
Deal Aims to Boost Trade and Major Purchases
Speaking at the signing ceremony of the Terms of Reference for a Free Trade Agreement between India and the Gulf Cooperation Council (GCC), Goyal highlighted the scale of India’s growing economic engagement with the US. He said India’s orders for US aircraft, engines and related equipment alone are expected to cross USD 100 billion.
Goyal also reiterated that India and the US are complementary economies and that the trade agreement will benefit both sides. The bilateral trade agreement aims to more than double trade between India and the US—from the current USD 191 billion to USD 500 billion by 2030. According to Goyal, several areas of the agreement have already been finalised after extensive negotiations.
GCC FTA signing and broader trade vision
Negotiations for the bilateral trade agreement gained momentum after Prime Minister Narendra Modi’s visit to the US in February 2025. The deal was formally announced following a phone call between PM Modi and US President Donald Trump on February 2.
Addressing concerns raised in the Lok Sabha, Goyal said negotiators from both countries have been working at multiple levels for nearly a year. He stressed that sensitive sectors on both sides were protected during talks. In India’s case, agriculture and dairy were among the key sectors safeguarded.
The signing ceremony also saw participation from senior officials, including Commerce Secretary Rajesh Agrawal, India’s chief negotiator Ajay Bhadoo, GCC chief negotiator Raja Al Marzouki, and senior representatives from the GCC and India’s Ministry of External Affairs.
Reflecting on the long-standing trade ties between India and the Gulf region, Goyal said the two sides have been trading partners for thousands of years. He added that the proposed agreement would allow smoother movement of goods and services and strengthen bilateral relations.
Goyal said India is actively pursuing trade agreements with developed nations to expand its global economic presence. He added that the deal would create opportunities for MSMEs, farmers, fishermen, youth, and the manufacturing sector, with food processing, infrastructure, and petrochemicals expected to benefit the most.
(With ANI Inputs)
Joint statement on India–US trade deal to be expected in four-five days : Goyal
