The first phase of the proposed India-United States bilateral trade agreement has been finalised and is currently undergoing legal drafting, according to Commerce Minister Piyush Goyal.

He said the agreement is being refined through its final legal contours and is expected to be concluded and operationalised soon, provided India secures a comparable or competitive advantage over its peer economies.

Goyal stated that India is seeking trade terms that enhance its competitiveness against other countries exporting to the United States, reflecting New Delhi’s broader objective of improving market access for Indian goods.

Commerce Secretary Rajesh Agrawal said negotiations are progressing in the right direction and that both sides are in a favourable position to conclude the agreement. He expressed optimism that the deal could be signed at the earliest possible opportunity.

Agrawal noted that the timing of the signing will depend in part on parallel developments in the United States, particularly the formalisation of its overall tariff structure. He added that outcomes linked to ongoing Section 301-related processes in the US will help determine the final timeline for the agreement.

External Affairs Minister S Jaishankar recently said the negotiations appear to be moving towards a conclusion. He emphasised that a significant aspect of the discussions involves not only the terms agreed between India and the United States but also how those terms compare with arrangements secured by competing economies.

EAM Jaishankar said trade officials from both countries are continuing to resolve outstanding issues and indicated that the negotiations are approaching a potential landing point.

India and the United States have been engaged in negotiations since early 2025 with the aim of reducing tariff-related friction, addressing non-tariff barriers and expanding bilateral market access. A key Indian objective is to obtain more favourable tariff treatment than competing nations for its exports to the American market.

Earlier this month, United States Trade Representative Jamieson Greer said both countries were working to finalise the agreement, although he cautioned that a deal was not imminent. He confirmed that the remaining unresolved issues had been identified and were being actively addressed.

The broader bilateral relationship has faced challenges over the past year. Tensions increased after Washington imposed punitive tariffs on Indian exports and following assertions by President Donald Trump regarding his role in helping de-escalate the India-Pakistan military confrontation in May 2025, remarks that prompted a strong response from Indian officials.

Additional strain emerged from changes to US immigration policies and a decision to increase H-1B visa fees, developments closely watched by Indian professionals and businesses.

Relations have come under further pressure following US restrictions affecting a major green-card processing program used by leading global and Indian information technology companies, including Tata Consultancy Services and Wipro.

Despite these areas of disagreement, officials on both sides have continued negotiations, with the proposed trade pact viewed as a significant step towards strengthening economic engagement, improving market access and reducing long-standing trade barriers between the two countries.

Agencies