India-US trade pact first phase finalised, legal drafting under way, says Piyush Goyal

Commerce and Industry Minister Piyush Goyal said the first phase of the India-US trade pact was finalised. Goyal said the text was now in legal drafting before it could be put into effect. Goyal linked implementation to India getting a tariff edge over comparable countries. The comments were made at the SRCC Centenary Conclave on Thursday.

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Goyal said the position on the proposed deal had not shifted over time. Goyal said the remarks matched earlier statements made in recent months. "US bilateral trade agreements first tranche has been finalised, and it is going through final contours, the legal drafting, and we hope to be able to finalise that soon and operationalise that once we get the comparable advantage or competitive advantage over our peer countries,\" Goyal said.

India-US trade pact legal drafting and tariff advantage

Commerce Secretary Rajesh Agrawal said talks with the US were progressing well. \"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. Agrawal said the agreement timing depended on US work to formalise an overall tariff structure.

Agrawal said parallel work was underway in the US to restore tariff structures. Agrawal said outcomes under Section 301 would shape the next steps. \"So, there is parallel work being done in the US also to get back the tariff structure and based on some of the outcomes under Section 301, we will progress towards signing the deal at a mutually agreed time,\" Agrawal said.

Agrawal said legal drafting was continuing, with focus on preferential access. Agrawal said trade pacts matter because they improve market access on both sides. \"The idea is when you do a trade deal, the trade deal has also a very important component that it gives you not only market access in each others market, it gives you preferential market access in each others market,\" Agrawal said.

Agrawal said India wanted preferential terms compared with competitors in the US market. \"So in that context, India has to get preferential market access with their competitors. And that is something which will come as a part of the new tariff framework that the US is working on,\" Agrawal said. India has sought better tariffs than rivals for Indian goods.

India-US trade pact and Section 301 issues

Asked about concerns linked to Section 301 investigations on excess capacity, Agrawal said issues would be addressed. \"I think all other issues will get settled as part of the deal,\" Agrawal said. Earlier this month, India and 14 other countries urged joint global steps against excess industrial output.

On the same issue, Agrawal said India had opposed capacity built through non-market measures. \"Excess capacity due to non-market forces or non-market interventions has been something which India has also been opposing in a big way,\" Agrawal said. Agrawal added such policies harm global trade and disrupt supply and demand balance.

Agrawal was also asked about the US Lindsey O Graham Sanctioning Russia and Iran Act of 2026. The measure allows US President Donald Trump to impose tariffs up to 100 per cent. It targets the biggest buyers of Russian oil and gas. \"Hopefully when it pact is signed, hopefully we will have more clarification on that.\"

Agrawal said India would seek steadier tariff and trade conditions through the agreement. Agrawal did not confirm if the Act would be part of the US tariff framework. Agrawal said clarity may come when the pact is signed. The government has linked the deal to stability in duties and trade flows.

India-US trade pact status and diplomatic timeline

Earlier this month, US Trade Representative Jamieson Greer said the deal was not close. \"At the same time...I dont think theres something imminent, but we truly have identified the universe of items that are sticking points. Were working diligently towards them,\" Greer said. Agrawal said the set of issues had narrowed over time.

US Secretary of State Marco Rubio will travel to India next week. The framework for the first tranche was announced in February. Later shifts in the US tariff landscape led to further negotiations. On October 5, Finance Minister Nirmala Sitharaman said talks were still on, but both sides had hit a plateau.

Trade data showed modest export growth despite high tariffs. India’s outbound shipments to the US rose 0.92 per cent to USD 87.3 billion last fiscal. Imports from the US increased 15.95 per cent to USD 52.9 billion. The trade surplus fell to USD 34.4 billion in 2025-26 from USD 40.89 billion.

US Ambassador to India Sergio Gor said talks were progressing quickly. Gor said major items were already settled. \"I wont like to get into too many details at this stage, and let the ministers announce that. But in the grand scheme of things, big items are done.\" Officials said the pact would move ahead once the US tariff framework is clearer.

With inputs from PTI