India’s first tranche of a bilateral trade agreement with the United States is “almost finalised,” Commerce and Industry Minister Piyush Goyal said on Monday, as both sides work on securing preferential market access for Indian goods.
Goyal’s remarks came at an event in New Delhi, coinciding with a fresh round of negotiations in Washington. An Indian delegation led by chief negotiator Darpan Jain has begun a three-day engagement with US officials, marking the first formal talks since discussions scheduled for February were deferred.
Ahead of the negotiations, Foreign Secretary Vikram Misri held meetings in Washington, reviewing what he described as the “full spectrum” of bilateral ties, including trade, technology, defence, and strategic coordination.
The proposed agreement stems from a framework unveiled on February 7 during Prime Minister Narendra Modi’s visit to Washington. It included plans to reduce US tariffs on Indian goods from as high as 50 percent to 18 percent and remove a 25 percent penalty tariff linked to India’s purchase of Russian crude oil.
However, the deal has yet to be formally signed. A ruling by the US Supreme Court struck down reciprocal tariffs imposed under emergency powers, after which the administration of Donald Trump introduced a temporary flat 10 percent tariff on all countries for 150 days starting February 24, altering the trade landscape.
The talks are further complicated by Section 301 investigations launched by the US Trade Representative on March 12, covering multiple economies, including India and China, over concerns related to goods produced with forced labour.
India has also committed to purchasing up to $500 billion worth of US goods over five years, including energy, aircraft, and technology, adding weight to the negotiations. At the same time, China has overtaken the United States as India’s largest trading partner in 2025-26.
Despite the challenges, Goyal said India is in a “very sweet spot” in its trade engagement and remains focused on securing favourable terms, signalling confidence that an agreement is within reach.