India and US Near Finalization of Trade Agreement, Says Goyal

Commerce and Industry Minister Piyush Goyal has announced that India and the United States have largely concluded discussions on their bilateral trade agreement, with only final adjustments remaining. Goyal made these remarks while leading a business delegation during his official trip to the Netherlands.

Progress in Bilateral Talks

During his visit to the US in September 2026 for the G20 Trade Ministerial, Goyal engaged in significant talks with US Trade Representative Jamieson Greer. In a positive turn, India’s exports to the US saw a notable increase of 11.1%, amounting to $50.81 billion between April and September of this year. Concurrently, imports from the US rose nearly 26%, reaching $32.33 billion during the same timeframe.

Optimism from US Officials

In an exclusive interview, US Secretary of State Marco Rubio indicated that the trade agreement is “incredibly close” to fruition. He expressed confidence that negotiations are now focused on technical details, leading to an expected agreement in a matter of weeks rather than months. Rubio emphasized the necessity of enhancing trade terms for both nations.

The Secretary acknowledged that while both countries must defend their national interests, their collaborative spirit and shared values will provide a solid foundation for overcoming differences and achieving a mutually advantageous outcome. “Friends and allies can bridge those gaps and arrive at beneficial agreements,” he noted.

Current Tariff Landscape

Indian exports to the US currently face the most-favored-nation (MFN) tariffs, averaging at 2.8% on many products. However, several commodities, including metals like steel, copper, aluminum, and auto components, remain exceptions to this tariff structure. Furthermore, the US has implemented an additional 10% duty on select imports from India under Section 301, reduced from an original proposal of 12.5%, which affects imports from 43 countries.

According to the US Trade Representative, 60 economies were found to inadequately prevent or enforce restrictions related to forced labor, leading to additional tariffs for 17 nations, including India. Unfortunately, India did not receive tariff-rate quota exemptions for its textile and apparel exports, unlike some neighboring countries such as Bangladesh, which benefitted from specified exemptions using US-sourced materials.

Trade Balance and Future Engagements

The Indian Commerce Ministry reported that 45% of its exports to the US remain exempt from the new additional tariffs. The Ministry is actively working with US authorities to address outstanding trade concerns and aims to finalize the bilateral trade agreement soon.

In mixed news, energy imports have significantly driven India's purchasing from the US. The nation’s crude oil imports from the US surged from $6.6 billion to $9.1 billion during FY26, with total energy acquisitions hitting $12.5 billion. This total includes $1.4 billion worth of liquefied natural gas, $896 million in liquefied petroleum gas, and $861 million in petroleum coke.

Looking ahead, both nations are committed to an agreement that is well-balanced and mutually reconcilable, as reaffirmed in a joint statement earlier in 2026. The ongoing regular communications between the Indian government and US officials suggest that further progress is imminent.