India-US Trade Deal: First Tranche Finalised, Legal Drafting Underway
Commerce Minister Piyush Goyal confirms the first tranche of the India-US trade agreement is finalised and undergoing legal drafting.
In a significant boost to bilateral economic ties, Union Commerce and Industry Minister Piyush Goyal has announced that the first tranche of the India-US trade deal has been finalised. Speaking at the Centenary Conclave of Shri Ram College of Commerce (SRCC), the Minister revealed that the agreement is currently in the stage of legal drafting and final review.
The Road to Operationalisation
Minister Goyal expressed optimism regarding the timely implementation of the agreement. However, he noted that the official operationalisation would depend on India securing a competitive advantage over its peer nations. He emphasised that the final contours are being meticulously shaped to ensure the deal serves India's strategic interests.
"US bilateral trade agreement first tranche has been finalised. It's going through the final contours, the legal drafting, and we hope to be able to finalize that soon and operationalize that once we get comparable advantage or competitive advantage over our peer countries," Goyal stated.
Trade Volume on the Rise
Despite existing uncertainties surrounding tariffs, the trade relationship between the two giants has shown remarkable growth. Recent data from the Ministry of Commerce and Industry highlights a strong upward trajectory in merchandise trade for the period of April to September 2026:
- Exports to the US: Grew by 11.1 per cent, reaching USD 50.81 billion, up from USD 45.73 billion in the previous year.
- Imports from the US: Witnessed a sharp surge of 26 per cent, climbing to USD 32.33 billion from USD 25.66 billion.
This increase in imports has resulted in a slight narrowing of India's merchandise trade surplus with the United States, which now stands at USD 18.48 billion, compared to USD 20.07 billion in the same period last year.
Seeking Preferential Market Access
Commerce Secretary Rajesh Agrawal echoed the Minister's positive outlook, stating that negotiations are moving in the right direction and the two nations are in a "very good zone" to close the deal quickly.
A key objective for India in these negotiations is obtaining preferential access to the American market. Secretary Agrawal explained that such an agreement does more than just open doors; it provides a strategic edge that allows Indian exporters to compete more effectively against other global competitors.
The United States continues to hold its position as the primary destination for India's merchandise exports during the first half of the current financial year, underscoring the criticality of this pending trade agreement.