India-US trade agreement hinges on tariff edge over rivals

The first phase of the India-US trade agreement is complete and now in legal drafting, Commerce Minister Piyush Goyal said in New Delhi on Thursday.

Goyal, the Commerce and Industry Minister, made the remarks at the opening of the SRCC Centenary Conclave. He voiced hope that both sides could wrap up the text and bring it into force soon.

Still, he attached a clear condition. India would operationalise the pact “once we get the competitive advantage over our peer countries,” he said.

In plain terms, New Delhi wants US tariffs on its goods to be lower than those facing competing exporters.

Gor praises pace of India-US trade agreement talks

Earlier on Thursday, US Ambassador to India Sergio Gor said the two governments had ticked off the biggest items on their checklist. He called the speed of the talks “incredible.”

Gor also pointed to India’s huge market and its stance on foreign investment. In his view, both make the country highly attractive for American firms.

Talks began in early 2025. Since then, negotiators have tried to cool tariff-related tensions, scrap barriers other than tariffs and open markets wider.

India-US trade agreement deadlines slip

So far, the India-US trade agreement has missed several of its own deadlines. Back in September 2025, Goyal told reporters in Patna that the first tranche would be ready by November that year.

He said at the time that Prime Minister Narendra Modi and President Donald Trump had set that goal together in February 2025. Around then, Trump wrote that the two nations were still negotiating to tackle trade barriers. He also said he felt certain both countries would reach a successful conclusion.

Then, in February 2026, Goyal described the first tranche as almost ready. He expected a joint statement within four or five days.

After that, he said, Washington would issue an executive order cutting the tariff to 18%. A formal agreement, he added, could follow by mid-March.

Russian oil sanctions in the background

Gor also discussed a US law that could lead to penalties on buyers of Russian oil and gas, and on anyone helping others dodge sanctions.

The law won 86 of 100 votes in the Senate. Under the law, the president can impose such measures, and Gor expected Trump to decide within 10 days.

However, Gor stressed that no single country is the target. Instead, the law sorts cases into “three different buckets”: oil, gas and sanctions evasion.

“It just happens that India does fall in one of those buckets,” Gor said. “The goal is not to punish anyone,” he added, saying the real aim is to bring the war to an end.

EU agreement next

Meanwhile, Goyal also spoke about talks with the European Union. In his words, both sides will sign their free trade pact in December, and it should come into force in February or March next year.

Together, the two agreements would reshape India’s trade ties with major partners. Even so, officials on both sides still have to finish the legal text of the India-US trade agreement.