India-US Trade Agreement: India is aiming to convert its interim trade understanding with the United States into a formal legal agreement before the end of March, Commerce Secretary Rajesh Agrawal said on the sidelines of BIOFACH 2026.
Agrawal explained that the recently issued India-US joint statement outlines the broad framework of the interim deal. The next step, he said, is to translate that understanding into a legally binding document. “The process is underway,” he noted, adding that both sides are working to give the agreement operational shape.
While expressing optimism about meeting the March timeline, Agrawal acknowledged that legal drafting can be complex. “We expect to finalise and sign the legal agreement before the end of March. However, drafting a document that satisfies both sides can sometimes take time. Still, our teams are engaged, and March is the timeline we are working towards,” he said.
Highlighting the sectors likely to gain from the pact, the Commerce Secretary pointed to India’s strength in labour-intensive industries. The United States has traditionally been a major market for such sectors, and Agrawal said the interim framework would help them expand without disruption.
Responding to concerns over the proposed 18% tariff ceiling, he argued that India’s competitors in the same region face even higher tariffs. As these tariffs are ultimately passed on to consumers and industry, he suggested, Indian exporters would remain competitive and retain effective market access.
Agrawal also expressed confidence that exporters would regain lost ground in global supply chains, especially after missing peak seasonal opportunities such as Christmas demand. He said Indian exports, which have performed steadily in recent years, are expected not only to maintain momentum but also to grow further.
On the issue of protecting sensitive sectors such as dairy and fisheries, the Commerce Secretary was firm. India, he said, has consistently safeguarded areas that directly affect farmers, fishermen and rural livelihoods. “We have made it clear in all our trade negotiations that sectors sensitive to India cannot be opened up indiscriminately,” he said.
He pointed to five trade agreements concluded over the past year, noting that in each case sensitive sectors were shielded. In instances where limited market access was granted, India relied on mechanisms such as Tariff Rate Quotas (TRQs) to ensure that domestic producers were not adversely affected.
According to Agrawal, the interim agreement has been positively received by industry stakeholders. He said extensive consultations were held with ministries and businesses during negotiations. “Industry has given a thumbs up. In a global environment where reciprocal tariffs are becoming the norm, what we have secured is a balanced outcome that works for India,” he said, adding that there are no major red lines in the pact.
On export performance, Agrawal said India continues to hold steady in both merchandise and services trade, with services exports performing particularly well. Official data for January will be released on February 15, and he indicated that the numbers are expected to reflect a positive trend.
India is also marking its presence at BIOFACH 2026 in Nuremberg, Germany, where it is participating as the Country of the Year. The country’s organic sector is being showcased through 67 co-exhibitors representing more than 20 states, spread across a 1,074 square metre pavilion.
(with ANI inputs)
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
