India is preparing to finalize its interim trade agreement with the United States, with signing expected in March and operationalization scheduled for April, commerce minister Piyush Goyal announced on Friday. The move marks the first in a series of trade deals and free trade agreements (FTAs) that India plans to implement in 2026, including agreements with the UK, Oman, and New Zealand.
India’s chief negotiator, Darpan Jain, will lead the delegation to Washington next week to finalize the legal text of the interim India-US trade pact, in line with the joint statement issued by both countries on February 7.
“The joint statement outlines the framework agreement reached between India and the US. It sets the contours of the deal, which now need to be translated into a legal agreement,” said commerce secretary Rajesh Agrawal. He added that both sides are actively engaged in finalizing the text, with the goal of signing it by March.
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Timeline for India’s Upcoming Trade Agreements
According to Goyal, the India-US deal will be followed by the operationalization of India’s FTAs with the UK and Oman in April. Later in the year, the trade agreement with New Zealand is expected to come into effect in September.
Tariff Reductions on Indian Exports
As part of the ongoing negotiations, Washington is expected to lower the 25% reciprocal tariff on Indian merchandise exports to 18%, potentially as early as this week. Agrawal confirmed that the previous 25% tariff imposed on India due to Russian oil purchases has already been removed.
“Our target is to finalize, close, and sign the legal agreement by March. If tariff reductions are not completed before the delegation’s visit, our team will address the pending issues in Washington next week,” Agrawal said.
The interim India-US trade deal is seen as a key step in strengthening bilateral trade relations and expanding market access for Indian goods in the US, while setting the stage for additional agreements with other global partners.