India and the United States are close to finalising a trade pact, with negotiations intensifying over market access and tariff benefits as both nations seek to secure strategic economic advantages in an evolving global landscape.
India and the United States are close to settling a trade pact, with Commerce and Industry Minister Piyush Goyal saying the agreement is “almost done and dusted” as negotiations continue over market access and tariff advantages. Speaking in remarks reported by Business Today, Goyal said the deal would be completed once Washington offers India a competitive position in the American market, underscoring that the talks are now at an advanced stage rather than starting from scratch.
The minister’s comments come against the backdrop of an interim framework announced in February and a broader push by New Delhi to widen its free trade network. According to Business Today, Goyal said India has finalised nine free trade agreements and that its trade arrangements are intended to open preferential access to economies that together account for around three-quarters of global GDP. He also said the shift in the tariff landscape in the US had forced further discussion, suggesting that the final shape of the pact will depend on how both sides reconcile their commercial priorities.
The latest round of diplomacy is due to intensify as Goyal heads to the US for the G20 Trade Ministerial in Milwaukee, Wisconsin, from September 30 to October 1. Business Today reported that he is expected to meet US Trade Representative Jamieson Greer there, with the bilateral talks likely to focus on the status of the deal and the remaining gaps in the negotiations. In February, Goyal said the interim understanding protected Indian agriculture and dairy interests, barred genetically modified imports and included zero tariffs on a range of products from farm goods to pharmaceuticals and aircraft parts, illustrating the breadth of the bargain already under discussion.
India is also pursuing a wider trade agenda beyond Washington. Goyal said talks with Canada have gained pace after a meeting in Mumbai last week with Canada’s minister of international trade, Maninder Sidhu. He said the terms of reference have been completed with Mexico, the first round of negotiations with the Gulf Cooperation Council is set for October, and an economic partnership agreement with Chile could follow soon. By contrast, he suggested a pact with Peru may be harder to reach, while a trade deal with Israel could take longer because of the regional geopolitical backdrop.
Goyal also used the occasion to revisit India’s decision not to join the original Regional Comprehensive Economic Partnership negotiations, arguing that doing so would have amounted to entering a free trade agreement with China. He said India already has trade pacts with ASEAN, Japan and South Korea, and was then negotiating with Australia and New Zealand, leaving China as the main remaining counterpart in the bloc. His remarks reflect a broader effort by New Delhi to present its trade policy as selective rather than automatic, with the focus on agreements that deliver clear strategic and commercial gains.
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