India-US Likely To Seal Trade Pact By April 2026: Piyush Goyal

The Union Commerce and Industry Minister Piyush Goyal noted that that a team will be headed to the United States led by the chief negotiator to deliberate upon the legal framework of the India-US trade deal.

"A team under chief negotiator is going to the US on Feb 23 to discuss the legal framework of the India-US trade deal," he said. 

Further, he signalled on the possibility that in April free trade pacts with the UK and Oman will get operationalised. The trade deal with the United States is also likely to come into effect during the same period.

An interim trade agreement between India and the US is likely to be signed in March and operationalised in April, he added. 

Ahead of Goyal's statement on India-US trade pact, Sergio Gor, the US Ambassador to India, said, "India-US trade deal set to be inked soon."

Also Read: Qualcomm, Tata Electronics JV To Produce Automotive Modules in Assam

This comes after Prime Minister Narendra Modi and US President Donald Trump announced the agreement upon an interim trade deal on February 7.

US and India reached a framework for an interim agreement on trade, with Trump issuing an executive order removing 25 per cent tariffs imposed earlier as a result of India's purchases of Russian oil.

Under the trade deal, the United States has agreed upon slashing the levy to 18% instead of 25% on India.

Earlier, Piyush Goyal had said, "India is the only country which has done a very detailed, very, very exhaustive negotiation and not entered into a broad agreement without the details being finalised in advance." He confirmed that for phase one of the Bilateral Trade Agreement (BTA), the negotiations are complete, and the teams are now putting the final terms to paper."

Goyal had also noted that zero duty products now include spices, tea, coffee and its by products, coconut, coconut oil, cashew nuts, chestnuts, fruits, and vegetables among others.

On the other hand, the US tariffs have been reduced to zero on agricultural products like avocados, guava, mango, chivvy, pineapple, mushroom, vegetable roots, cereals like barley, bakery goods, sesame seeds, processed fruits, and guava paste.

India will also "receive a preferential tariff rate quota for automotive parts subject to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17, 2019."

Meanwhile, the Union Minister confirmed that zero duty would be imposed on aircrafts parts, machinery, generic drugs, diamonds, platinum, watches, essential oil, home decors. lamps parts, aluminum oxide, plastic goods, inorganic compounds, mineral and natural resources, among other goods.