India and the United States have finalised the broad framework for a proposed bilateral trade agreement, with negotiations now focused on developing a new tariff structure before the pact can be implemented, Commerce Secretary Rajesh Agarwal said.
Speaking to NDTV Profit, Agarwal said the "new tariff structure is under work," indicating that discussions have entered the final phase.
The remarks come as tariffs remain the key issue before the agreement can be operationalised. Both countries have agreed on the overall framework, but are now working on a tariff regime that would ensure Indian exports remain competitive in the US market.
Agarwal's comments echo Commerce and Industry Minister Piyush Goyal's recent statement that India cannot implement the trade agreement until it secures a competitive tariff advantage over rival exporting nations. Goyal had said India is seeking lower duties for its products compared with competing countries before the pact takes effect.
The commerce secretary also said the government remains committed to its target of achieving $1 trillion in exports.
On the India-UK Free Trade Agreement, Agarwal said the pact would provide immediate tariff benefits to sectors such as gems and jewellery and leather, while also boosting services trade.
He said the agreement includes mobility commitments and would improve the competitiveness of Indian companies in the UK market.
Agarwal added that issues relating to the UK's Carbon Border Adjustment Mechanism (CBAM) had been resolved outside the FTA framework, while the UK's steel safeguard measures were imposed after the trade agreement was signed.