India And US Fine-Tuning Trade Pact, Says Goyal, With Most Issues Settled

Commerce and Industry Minister Piyush Goyal said on Tuesday that India and the United States have resolved most of the issues in their proposed bilateral trade agreement and are now giving the pact its finishing touches. The remarks, made as negotiations entered an advanced stage, add to a series of optimistic signals from both capitals in recent days about an imminent breakthrough.

Officials have described the first tranche of the agreement as substantially agreed, with legal drafting under way. During a recent high-level visit, senior US officials said the two sides were "very close" and that only a small number of items remained to be wrapped up, though no formal signing had been announced as of this week.

What is at stake

A deal would be significant for both economies. For Indian exporters, greater certainty on tariffs and market access in sectors such as textiles, engineering goods, pharmaceuticals and electronics could support order books that have been clouded by trade tensions. For the United States, improved access to a large and growing market, along with cooperation on technology and supply chains, is a central objective.

Negotiations have run for months and have at times been complicated by sensitive areas including agriculture, dairy and digital trade. The current phase, officials indicate, has narrowed the outstanding points to a manageable list, with both sides keen to lock in an interim or first-phase arrangement that can be built on later.

What it means

Trade policy has been one of the defining economic stories of the year, and markets have tracked each development closely given the implications for exporters, the rupee and investment flows. A concluded agreement, even a narrow one, would remove a source of uncertainty and could improve sentiment toward export-oriented sectors.

• Officials say most issues are settled and the pact is being fine-tuned.

• The first tranche is described as substantially agreed, with drafting in progress.

• No formal signing has been announced, but both sides signal confidence.

Businesses will watch for the final text and timelines, which will determine how quickly any tariff and market-access changes translate into orders on the ground. Until then, the message from New Delhi is that a deal is close, but not yet done.