India-US Trade Deal ‘More or Less’ Finalized, Commerce Secretary Says
Mumbai — The proposed India-US trade deal is “more or less” finalized, with the two countries now working on a framework to provide preferential market access before formally signing the agreement, Commerce Secretary Rajesh Agrawal said Wednesday.
Speaking to reporters on the sidelines of the Global Fintech Fest 2026, Agrawal said a few issues remain under discussion but indicated that negotiations have reached an advanced stage.
“There are few things which both sides are discussing, but it will be signed at an appropriate time,” Agrawal said.
He said the two countries need to establish a mechanism to ensure preferential access to each other’s markets. India largely operates under most-favored-nation tariffs, while the United States is currently using executive tariffs, making it necessary to create a structure that provides tariff differentials and preferential access for Indian businesses.
Agrawal said businesses in both countries are already engaging actively and are satisfied with the broad understanding reached between the two governments.
He also provided updates on India’s other trade negotiations. The India-Chile free trade agreement has reached the final stage, although discussions continue in some areas, with progress expected over the next two to three months.
India is also seeking to bring its free trade agreement with New Zealand into effect “as soon as possible,” with October seen as a potential timeline.
On rising freight costs, Agrawal said the government is working with exporters to ensure adequate access to ships and containers while reducing cargo delays and logistics expenses.
Despite higher freight costs, India’s exports grew by more than 15 percent during the first four months, suggesting the impact of elevated shipping expenses has so far been lower than initially expected.
Agrawal also said India needs to diversify its services exports beyond information technology, IT-enabled services and professional services to sustain long-term growth.
India’s total exports stood at about $863 billion in 2025-26, including approximately $421 billion in services. IT and IT-enabled services account for nearly half of services exports, while professional services contribute another 30 percent.
“So these are the two pillars on which our services exports are based right now but it needs diversification if we have to grow and if we have to grow sustainably for a long period of time, we need diversification,” Agrawal said. (Source: IANS)
