India-US Trade Deal Nears Completion as Piyush Goyal Prioritises Export Competitiveness
India and the United States are moving closer to concluding the first phase of their bilateral trade agreement, with Union Commerce and Industry Minister Piyush Goyal indicating that the process is nearing completion. The agreement aims to strengthen economic ties, improve market access and create new opportunities for Indian businesses in the American market. India’s priority is to ensure that domestic exporters receive competitive tariff treatment compared with businesses from other countries.
Speaking at an event organised by Shri Ram College of Commerce in New Delhi on October 15, 2026, Goyal said that the agreement was in the final stages of legal drafting. The remaining discussions are focused on resolving outstanding issues and ensuring that the proposed terms serve the commercial interests of both countries. The final signing and implementation will depend on the completion of the necessary procedures and clarity on the applicable US tariff framework.
India Seeks Better Market Access for Exporters
A key objective of the negotiations is to ensure that Indian products remain competitive in the United States. Indian exporters face competition from countries such as Vietnam, Bangladesh and Indonesia, particularly in sectors including textiles, garments, footwear and manufactured goods. Differences in import duties can influence product prices and affect the ability of businesses to secure orders in international markets.
India is therefore seeking favourable and predictable tariff conditions that would help its exporters compete effectively. Improved market access could benefit manufacturers, create opportunities for businesses to expand overseas and encourage investment in export-oriented industries. The agreement could also strengthen cooperation in engineering goods, pharmaceuticals, chemicals, machinery and other sectors, depending on the final terms.
February Framework Sets the Foundation
The latest negotiations build on the interim trade framework announced by India and the United States in February 2026. Under the announced framework, the US agreed to apply an 18 per cent reciprocal tariff rate to specified Indian goods, including textiles and apparel, leather and footwear, plastics, chemicals and certain machinery. The framework also outlined proposed tariff relief for selected products, subject to the conclusion of the interim agreement and applicable conditions.
India, in turn, outlined plans to reduce or eliminate tariffs on selected American industrial and agricultural products. Both countries also expressed their intention to address non-tariff barriers, strengthen supply chains and expand cooperation in technology and other strategic sectors.
However, changes in US trade policy have added complexity to the negotiations. American tariff measures and ongoing trade investigations could influence the final arrangements, making greater clarity important before the agreement is signed.
US Tariff Policy Remains an Important Factor
The United States has been reviewing its trade measures, including investigations under Section 301 of the Trade Act of 1974 concerning issues such as structural excess manufacturing capacity. The outcomes could affect the tariff conditions faced by India and other trading partners.
For India, predictable trade rules are essential for businesses making long-term decisions about production, investment and exports. The ongoing discussions are therefore not limited to tariff reductions; they also concern creating a stable framework for bilateral commerce. Resolving the remaining issues would help both countries establish clearer expectations for businesses operating across their markets.
Wider Trade Partnerships Strengthen India’s Economic Outlook
Alongside negotiations with the United States, India is pursuing trade agreements with other major economies to expand export opportunities and diversify its international partnerships. The proposed India-European Union free trade agreement is another significant initiative that could improve access to a large market for Indian goods and services.
These efforts reflect India's broader ambition to strengthen domestic industries, attract investment and increase its participation in global supply chains. A successful agreement with the United States could complement these initiatives by providing Indian exporters with greater access to one of the world's largest consumer markets.
The MGMM Outlook
India and the United States are moving closer to finalising the first phase of their bilateral trade agreement, with Union Commerce and Industry Minister Piyush Goyal indicating that legal drafting is nearing completion. A key priority for India is securing competitive tariff conditions and improved market access for Indian exporters, particularly in sectors such as textiles, garments, footwear, pharmaceuticals and engineering goods. Building on the February 2026 interim framework, the agreement aims to strengthen economic cooperation, expand business opportunities and help Indian manufacturers compete more effectively in the American market.
The progress of the negotiations reflects India’s broader efforts to strengthen its global trade partnerships, expand exports and support domestic industries. Predictable tariff policies and favourable market access could encourage investment, create opportunities for businesses and strengthen India’s participation in international supply chains. Alongside its engagement with the United States, India is pursuing trade partnerships with other major economies to diversify export markets and reinforce its economic position. As discussions approach their final stage, the focus remains on securing mutually beneficial terms that advance India’s commercial interests and create long-term opportunities for Indian businesses.
(Sources: Business Standard, The New Indian Express, Hindustan Times)
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