India, U.S. likely to finalise joint statement on trade deal in 4–5 days: Piyush Goyal
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India and the United States are expected to finalise and sign a joint statement on the first tranche of their bilateral trade agreement within the next four to five days, Commerce and Industry Minister Piyush Goyal said on Thursday.
Speaking to reporters, Goyal said that once the joint statement is signed, the US will issue an executive order to reduce tariffs on Indian goods to 18%. Currently, Indian exports to the US face a 25% reciprocal tariff, along with an additional 25% levy linked to India’s purchase of Russian crude oil.
Detailed legal agreement for the pact is expected to be signed by mid-March
The minister added that while the joint statement would mark the first formal step, a detailed legal agreement for the initial tranche of the pact is expected to be signed by mid-March. “The joint statement will be followed by an exhaustive legal agreement,” Goyal said, clarifying that the current pact does not include any investment commitments.
Commerce Secretary Rajesh Agrawal echoed the timeline, saying that once the joint statement is signed, it will be converted into a legal agreement. “We are hopeful of signing that legal agreement by mid-March,” he said. The signing of the legal text will also result in India cutting tariffs on select US goods as part of the agreement.
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Addressing the Lok Sabha earlier this week, Goyal said the government had ensured full protection for sensitive sectors such as agriculture and dairy, which have traditionally been red lines in India’s trade negotiations. “We have been successful in protecting India’s sensitive sectors, including agriculture and dairy,” he told the House.
He said the trade deal would support flagship initiatives such as ‘Make in India’ and ‘Design in India’, while strengthening India’s journey towards self-reliance. According to the minister, labour-intensive sectors are expected to see a significant boost in exports following the reduction in tariffs to 18%. He added that the agreement would also create substantial opportunities for skilled professionals and benefit Micro, Small and Medium Enterprises (MSMEs).
Earlier this week, Goyal said Prime Minister Narendra Modi had consistently prioritised the interests of farmers and the dairy sector in all trade discussions. “Over time, the Prime Minister has made several efforts to safeguard India’s agriculture and dairy sector and has never compromised on his principles,” he said, adding that the sensitive sectors had been protected in the current deal as well.
Late on Monday night, Prime Minister Modi and US President Donald Trump officially confirmed the long-awaited India–US trade deal. Both leaders described the agreement as a major milestone and a turning point in bilateral ties, following the immediate reduction of US tariffs on Indian goods from 25% to 18%.