Piyush Goyal: 'Hope to conclude India-U.S. trade deal by November'

Union Minister of Commerce & Industry Piyush Goyal, speaking at the 21st Annual Global Investor Conference 2025 today, hinted that the trade relations with the U.S. are expected to normalise by November 2025, despite turbulence caused by the global tariff war.

Talking about disruptions caused by the U.S.' 50% trade tariff on Indian exports after the two countries failed to reach a trade agreement, the Union Minister said the world is living in a "very volatile, uncertain time, full of trepidation about the future".

"We have had a little bit of geopolitical issues, overtaking trade issues in our negotiations with the United States of America. I do hope things will get back on track soon and we conclude a bilateral trade agreement by fall, November or so, as was discussed by our two leaders in February. We recognise that there is tremendous global turbulence," the Union Minister said in a virtual address to the global investors.

Notably, India, along with Brazil, is currently facing the highest U.S. tariffs at 50%. US President Donald Trump has already threatened that it may be too late for a trade deal with India, though the government remains confident that the two countries will find a middle ground.

Speaking about the coming domestic reforms, the Union minister said the GST 2 reforms will be a tremendous boost to consumer sentiment and give a boost to demand in the market. "It will also make life easier and simpler towards GST compliance. You are already aware that we have made a significant reduction in both personal taxes and corporate taxes. In fact, 25% as corporate tax will be amongst the lowest in a long time, or ever since independence," he told global investors.

After years of deliberation, the Centre has decided to undertake the much-needed rationalisation of GST rates. In a major change in the current GST slabs of 5%, 12%, 18% and 28%, the government is now proposing a two‑slab system: 5% and 18%, and a special 40% GST rate, which will largely apply to “luxury” or “sin” products.

Goyal, meanwhile, also talked about the global uncertainty, emanating from the trade policy shift by the US, which he said has brought out a lot of opportunities and encouraged the government to re-look at its way of working. "And what better data point than a 7.8% GDP growth in the first quarter of the financial year 2025-26. The fastest growth in the last five years for a quarter. Private capex is significantly up by 66%."

Goyal said the government has been working to expand trading ties across the world, with FDIs already in place with Mauritius, UAE, and Australia. "Then we have a full nation EFTA block, Norway, Switzerland, Liechtenstein and Iceland...the United Kingdom, we are in active dialogue with the EU. My Commerce Secretary is in Brussels today." He said the there's an excitement across the world to expand trading and business relations with India.

He said India currently has strong macroeconomic fundamentals, including the lowest consumer price index inflation in a very long time. He also noted the "millions of new demand accounts" being opened month-on-month and there's 14% increase in FDI. "...but India today looks outward also. And we are investing in other parts of the world, simultaneously."

The minister said the banking sector has achieved the highest ever performance in many years. "All stakeholders today feel much safer with India's banking system. Of course some of you must have made good money also in the way bank stocks have risen in the last few years."

He said for India, the priority is to focus on boosting growth across the private sector by fortifying long-term capacity building and strengthening the microeconomy, thus ensuring ease of doing business and ease of living. "Deregulating wherever possible, reducing processes, procedure and policy, decriminalising laws to make it easier to attract more investment, more domestic and international".

He also mentioned about the Reserve Bank of India's cut in repo rate by 50 basis points, reduction in CRR by 1%, while maintaining low inflation at 1.5% to the above 1.55%. "(The government is) Clearly showing that good economics and good politics both can go together."

He urged global companies to invest boldly in India. "Along with investing boldly and ensuring price stability, let us also focus on greater depth in the market, let us also focus on high levels of ethics in the market, and let us take all necessary precautions, so that we do not see undue speculation, which can often lead to a near-gathering type of situation."