India–US Trade Deal: Joint Statement Expected Soon, Formal Pact Likely in March
First phase of agreement nearly finalised; tariff cuts and major purchase commitments outlined.
The first phase of the proposed India–US trade agreement is close to completion, with both countries expected to issue a joint statement within the next four to five days, Union Commerce and Industry Minister Piyush Goyal said on Thursday.
Speaking as initial details of the deal began to emerge, Goyal said the formal trade agreement would take another 30 to 45 days to finalise and is likely to be signed in March. The announcement follows comments by US President Donald Trump earlier this week regarding a trade understanding between New Delhi and Washington.
According to Goyal, the joint statement will be signed virtually. Once it is issued, the United States is expected to reduce tariffs on Indian goods to 18 per cent through an executive order.
“We want to conclude the agreement as quickly as possible, as it will allow us to secure further concessions in the next stage,” Goyal said.
Commerce Secretary Rajesh Agarwal also clarified that India’s tariff reductions on US goods would come into effect only after the legal agreement is formally signed in March.
Trade officials also provided clarity on President Trump’s claim that India would purchase goods worth $500 billion from the US. According to officials quoted by Reuters, aircraft orders alone are estimated at $70–80 billion and would form a significant part of these purchases.
Officials said India is expected to import goods worth around $300 billion annually, with the United States emerging as a key supplier, particularly in sectors such as energy, aircraft, and semiconductors.
Over the next five years, India’s total procurement is projected to reach $2 trillion, of which $500 billion is expected to be sourced from the US as part of the broader trade arrangement, officials added.