When will India seal US trade deal? Piyush Goyal says tariff edge is key

The India-US interim bilateral trade agreement (BTA) is still awaiting finalisation, with Commerce Minister Piyush Goyal saying New Delhi wants a tariff structure that gives Indian exporters an advantage over competitors.

Goyal, who is scheduled to travel to the US later this month, said the government is focused on securing better market access through trade agreements while ensuring Indian businesses make full use of the deals already in place.

India wants tariff advantage before signing

India and the US had agreed on a framework for an interim BTA on February 2. However, the deal could not be signed after the US Supreme Court invalidated the legal basis for the preferential tariff that Washington had offered.

Goyal said India remains ready to conclude the agreement once the tariff terms provide a clear advantage.

“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details,” Goyal said at a workshop on FTA utilisation.

Trade experts said uncertainty over US tariff measures remains an issue for the negotiations. They pointed to a 10% tariff imposed in July on several labour-intensive goods over alleged forced labour concerns under Section 301. The US has also begun another Section 301 investigation into alleged excess industrial capacity, raising the possibility of further tariff action.

Nine FTAs already in place

Goyal said India has concluded nine FTAs under the Narendra Modi government, with the agreements aimed at giving Indian exporters preferential access to international markets.

Since 2021, India has signed and operationalised trade agreements with Mauritius, the UAE, Australia, the European Free Trade Association (EFTA), Oman and the UK. Agreements with New Zealand and the European Union are in the process of being operationalised.

The government is now looking to improve the utilisation of these agreements rather than focusing only on signing new ones.

More trade agreements in the pipeline

India is also negotiating trade deals with Canada, Mexico, Chile, Mercosur, SACU, the GCC and Israel. At the same time, talks are underway to review or expand existing arrangements with ASEAN, South Korea and Japan.

Goyal said these agreements could eventually give India access to 75% of global trade at tariff rates lower than those faced by competitors.

Government officials said India is also close to concluding a Comprehensive Economic Partnership Agreement (CEPA) with Chile, which has significant reserves of critical minerals.