Commerce and Industry Minister Piyush Goyal on Thursday said the first tranche of the proposed India-US trade agreement has been finalised and is undergoing legal drafting, signalling progress in negotiations between the two countries.
The government hopes to complete the process soon, with implementation contingent on India securing a competitive advantage for its exporters.
“The first tranche has been finalised and is going through the final legal drafting. We hope to finalise it soon and operationalise it once we get a competitive advantage over our peer countries,” Goyal said. Negotiations between India and the United States on the proposed bilateral trade agreement are progressing positively, with discussions in a favourable zone, according to Commerce Ministry officials.
However, the agreement will be signed only after both sides reach an understanding on the overall tariff structure and India secures preferential market access for its exporters. “The negotiations are in the right direction, in a good zone.
The deal has to be signed when the overall tariff structure is agreed upon. India has to get preferential market access,” officials said. The remarks highlight New Delhi’s emphasis on ensuring that the agreement delivers tangible benefits to Indian businesses and enables domestic exporters to compete effectively in the US market. Tariff arrangements and the relative competitiveness of Indian goods are expected to remain central to the final negotiations. India and the US announced a framework for an interim trade deal in February.
However, the agreement has yet to be implemented as both sides continue working towards finalising its terms.
For India, securing preferential access to the American market is a key objective, particularly as global trade policies and tariff regimes continue to evolve. New Delhi is seeking terms that would place Indian exporters on a competitive footing with suppliers from other countries.
The final tariff structure is likely to play a decisive role in determining the timeline for signing and implementing the agreement.
While the completion of legal drafting marks progress on the first tranche, the deal’s operationalisation will depend on the finalisation of mutually acceptable terms. The proposed agreement could have significant implications for bilateral trade flows, export opportunities and market access across multiple sectors.
It also forms part of India’s broader efforts to diversify export markets, strengthen trade ties with major economies and expand its presence in global commerce.
Although the latest remarks indicate progress in discussions with Washington, the final outcome will depend on the terms agreed upon by both countries and the extent to which the arrangement improves the competitive position of Indian exporters in the US market.