India-US Trade Deal Update: Joint Statement Expected in Days, First Tranche Legal Text by Mid-March
India and the United States are set to take a major step forward in finalising their long-pending trade agreement, with a joint statement expected to be signed within the next four to five days, Union Commerce Minister Piyush Goyal said on Thursday.
Speaking to reporters, Goyal confirmed that the legal text of the first tranche of the India-US trade deal is nearly ready and is likely to be formally signed by mid-March. The agreement is expected to pave the way for significant tariff reductions on Indian exports to the United States.
“The first tranche of the bilateral trade agreement is almost ready. We hope to sign a joint statement in the next four to five days. After that, the formal legal agreement will be signed around mid-March,” Goyal said.
Following the signing of the joint statement, the US is expected to issue an executive order reducing tariffs on Indian goods to 18%, he added.
Commerce Secretary Rajesh Agrawal, who also addressed the press conference, explained that the joint statement would need to be converted into a legally binding agreement before tariff changes can be implemented. He noted that while US tariffs are imposed through executive orders, India’s tariffs operate under the Most Favoured Nation (MFN) framework, which requires a signed legal agreement for any reduction to take effect.
“This legal agreement will give us the authority to reduce our tariffs. Our MFN tariff reductions can only be implemented after the agreement is formally signed,” Agrawal said.
Earlier in the day, the US Ambassador to India shared updates on high-level engagements between Indian and US leadership, signalling momentum in bilateral discussions.
The trade deal gained fresh momentum following a phone conversation between Prime Minister Narendra Modi and US President Donald Trump on February 2. After the call, Modi confirmed that the US had agreed to reduce export tariffs on India to 18%.
At present, Indian exports face US tariffs of up to 50%, including a 25% penalty linked to India’s purchase of Russian oil. It remains unclear whether the proposed reduction to 18% will include the removal of this penalty.
In a separate statement, Trump claimed that India had agreed to reduce tariffs on certain US products to zero, though official details on this aspect are still awaited.
Addressing concerns in the Lok Sabha, Goyal said that negotiations had been ongoing for nearly a year, with both sides carefully protecting their sensitive sectors. He emphasised that India had secured safeguards for critical areas such as agriculture and dairy while ensuring balanced benefits for both countries.
“Both sides have worked to protect their sensitive sectors while finalising several key areas of the bilateral trade agreement,” Goyal said.
The India-US trade deal is expected to strengthen economic ties between the two countries and boost trade flows once the legal framework is formally signed.
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