The first phase of the proposed India-US bilateral trade agreement has been finalised and is undergoing legal drafting, Union Commerce and Industry Minister Piyush Goyal said on Thursday, signalling progress towards a potential breakthrough in trade negotiations between the two countries.
“The US bilateral trade agreement first tranche has been finalised. It’s going through final contours, the legal drafting, and we hope to be able to finalise that soon and operationalise that once we get comparable advantage or competitive advantage over our peer countries,” Goyal said while addressing the SRCC Centenary Conclave in Delhi.
Commerce Secretary Rajesh Agrawal also indicated that negotiations were progressing positively, expressing optimism that the agreement could be concluded and signed at the earliest possible time.
“Probably we are in a very good zone. We anticipate closing the deal and signing the deal at the earliest possible time,” Agrawal told reporters.
However, he noted that the timing of the signing would depend partly on the formalisation of the overall tariff structure in the United States. Parallel discussions are underway in Washington, including work relating to the outcomes of investigations under Section 301 of the US Trade Act, before both sides agree on a mutually convenient timeline for signing the pact.
External Affairs Minister S Jaishankar, speaking at the Bloomberg New Economy Forum earlier this week, similarly indicated that negotiations were approaching a potential resolution. He said the discussions were moving towards a “landing point”, while emphasising that India must secure competitive terms compared with other economies negotiating with Washington.
Jaishankar noted that the outcome would depend not only on the terms agreed between India and the US but also on how India’s trade position compares with that of competing countries. Negotiators from both sides are continuing to address outstanding issues, he added.
India and the United States have been negotiating the proposed trade agreement since early 2025, with the objective of addressing tariff-related disputes, reducing non-tariff barriers and expanding market access for goods from both countries. India has consistently sought more favourable tariff treatment to ensure that its exporters remain competitive in the US market.
Earlier this month, US Trade Representative Jamieson Greer said both countries were working towards finalising the agreement, although a deal was not imminent. He confirmed that the two sides had identified the outstanding issues and were continuing discussions to resolve them.
The negotiations are taking place against the backdrop of strained bilateral relations following Washington’s imposition of punitive tariffs on Indian goods last year. Tensions were further aggravated by US President Donald Trump’s claims concerning his role in de-escalating the India-Pakistan military clashes in May 2025, which drew strong reactions from Indian officials.
Differences over immigration policy, including an increase in H-1B visa fees, have added to the friction. More recently, Washington’s decision to restrict a key green-card processing programme affecting major global technology companies, including Indian IT firms Tata Consultancy Services and Wipro, has placed additional pressure on bilateral ties.
Despite these challenges, the latest statements from India’s senior economic and diplomatic officials suggest that both countries are working towards an agreement. However, the final timeline will depend on the resolution of outstanding issues, the US tariff framework and India’s efforts to secure terms that strengthen its position in global trade.