India-US trade deal: Details of the newly announced India–US trade agreement will see more clarity in the coming days, as Union commerce and industry minister Piyush Goyal has confirmed that the first tranche of the bilateral agreement is ready. A joint statement is expected within the next four to five days, paving the way for the United States to issue an executive order lowering tariffs to 18%. The formal legal pact is likely to be signed around mid-March.The announcement was made on Thursday during the signing ceremony of the terms of reference for a Free Trade Agreement between India and the Gulf Cooperation Council. Emphasising the scale of India’s growing economic engagement with Washington, Goyal said, “Our orders for US aircraft and engine etc will alone cross $100 billion.”

Outlining the tariff structure of the two nations, commerce secretary Rajesh Agrawal said, “their (US) tariffs are executive tariffs. Our tariffs are MFN tariffs. So (our) MFN tariffs reduction only can take place after the legal agreement has been signed.”“That will only happen after the legal agreement has been signed,” he further said.The India–US bilateral trade agreement has been under negotiation since PM Narendra Modi’s visit to the United States in February 2025. The deal was publicly announced following a phone call between PM Modi and Trump on February 2. Addressing questions raised by Members of Parliament in the Lok Sabha, minister Goyal said that negotiations had been underway at multiple levels for nearly a year. “Negotiators from both sides have been at various levels over the past year. During the negotiations, both sides safeguarded their important and sensitive sectors from the trade deal, at the same time ensuring maximum benefits for both countries,” he said. He further assured that India ensured protection for key sensitive sectors, especially agriculture and dairy, while acknowledging that some sectors were particularly important from the US perspective. “There were sectors which were important and sensitive from the US point of view. After negotiations for nearly a year, both sides have been successful in finalizing several areas of the bilateral trade agreement,” he said.Formally proposed in February 2025 following directions from the leadership of both countries, the bilateral trade agreement aims to increase two-way trade from $191 billion to $500 billion by 2030.The GCC FTA signing event was attended by senior officials from both sides, including commerce secretary Rajesh Agrawal, India’s chief negotiator Ajay Bhadoo, GCC chief negotiator Raja Al Marzouki, GCC director general for FTA Abulrazzaq Aljraid, and ministry of external affairs additional secretary Aseem Mahajan.