New Delhi: Union Commerce and Industry Minister Piyush Goyal said on Thursday that the first phase of the bilateral trade agreement between India and the United States is ready, with a joint statement likely to be issued within the next four to five days. He added that the formal legal agreement is expected to be signed around mid-March.
Goyal said that once the joint statement is released, the United States is likely to issue an executive order bringing tariffs down to 18 per cent. He made these remarks during the signing ceremony of the Terms of Reference (ToR) for a Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC).
Highlighting the scale of India’s expanding economic engagement with Washington, Goyal said India’s orders for US aircraft, engines and related equipment alone are expected to cross USD 100 billion.
Commerce Secretary Rajesh Agrawal offered clarity on the technical aspects of the agreement, explaining the difference between tariff systems in the two countries. He said US tariffs are executive in nature, while India follows the Most Favoured Nation (MFN) framework, meaning any reduction in India’s MFN tariffs can only take effect after the legal agreement is formally signed.
Earlier, Goyal reiterated that India and the US are complementary economies and that the trade deal would be mutually beneficial. Negotiations for the bilateral trade agreement gained momentum following Prime Minister Narendra Modi’s visit to the US in February 2025. The deal was formally announced after a phone conversation between Prime Minister Modi and US President Donald Trump on February 2.
Responding to concerns raised in the Lok Sabha, Goyal said negotiations have been ongoing at multiple levels for nearly a year, with both sides ensuring protection for their sensitive sectors while maximising overall gains. He stressed that India had secured safeguards for key areas such as agriculture and dairy, while accommodating sectors considered sensitive by the US.
The proposed bilateral trade agreement, initiated in February 2025, aims to more than double India-US trade from the current USD 191 billion to USD 500 billion by 2030.
Meanwhile, the GCC FTA signing ceremony was attended by senior officials, including Commerce Secretary Rajesh Agrawal, India’s chief negotiator Ajay Bhadoo, GCC chief negotiator Raja Al Marzouki, GCC FTA Director General Abulrazzaq Aljraid, and MEA Additional Secretary Aseem Mahajan.
Goyal said the agreement would open up major opportunities for MSMEs, farmers, fishermen, youth and the manufacturing sector, with food processing, infrastructure and petrochemicals expected to see significant benefits.
(with ANI inputs)
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