India says first phase of US trade deal nearly done, insists on edge over rivals

The first phase of an India-US trade ​deal is in the final stages of drafting, ​India's trade minister said on Thursday, but ‌reiterated ​that New Delhi would proceed only if it secures an advantage over competing exporters.

New Delhi and Washington agreed to a framework for the deal in February which brought down to ‌18% from 50% the punitive tariff on most Indian goods imposed in August last year after a previous round of talks collapsed. Since then, negotiations have run into hurdles, with officials on both sides signalling that efforts to reach a final agreement have slowed.

Indian ‌trade minister Piyush Goyal said the "first tranche" of the deal would be finalised soon. "It's going through the final contours, ‌the legal drafting, and we hope to be able to finalise that soon and operationalise that once we get comparable advantage or competitive advantage over our peer countries," a statement from his office quoted him as saying at an event in New Delhi.

Goyal was referring to New Delhi's efforts ⁠to secure ​a tariff advantage for Indian exporters ⁠over competing economies such as Bangladesh, Vietnam and Indonesia in the US market. India wants to ensure its exporters face tariffs no higher than those imposed ⁠on competing economies.

Trade Secretary Rajesh Agrawal echoed Goyal's comments. "We anticipate concluding and signing the trade deal at the earliest possible time," Agrawal ​said, adding that India was seeking preferential market access and greater tariff stability under the proposed agreement.

India's goods exports ⁠to the United States rose to $42.79 billion in April-August from $40.39 billion a year earlier. In the fiscal year 2025/26, India recorded a trade surplus of nearly $34 billion ⁠with ​the United States. Neither side has publicly detailed the reasons for the delay, but one recent complication has been a new US law that could pave the way for tariffs of up to 100% on Indian goods because of New ⁠Delhi's continued purchases of Russian oil.

The trade talks have unfolded against a backdrop of increasingly strained ties between India and ⁠the United States, complicating efforts ⁠to steady their trade partnership. US Secretary of State Marco Rubio will visit India and Uzbekistan, from October 17 to 22, and will meet government and business leaders to discuss energy cooperation, ‌commercial investment and broader ‌economic ties.