India and US Trade Agreement: First Phase Completed, Legal Drafting in Progress, According to Piyush Goyal
The India-US trade deal has progressed to the legal drafting stage, according to Commerce and Industry Minister Piyush Goyal. He stated that the agreement would be operational once India secures a competitive advantage over its peers. Goyal expressed optimism that the finalization process would be completed soon.
Goyal confirmed that the first tranche of the bilateral trade agreement has been finalized and is currently undergoing legal drafting. He emphasized that the deal would be operationalized once India achieves a competitive edge compared to other countries.
Update on EU Trade Negotiations
In addition to the US trade deal, Goyal provided insights into India’s trade negotiations with the European Union. He announced that a free trade agreement is expected to be signed in December, with implementation anticipated in February or March of the following year.
US Ambassador to India, Sergio Gor, also commented on the trade deal, noting that major items on the checklist have been cleared. He described the pace of negotiations as “incredible.” Gor also addressed recent US legislation that could impose sanctions on countries purchasing Russian oil and gas or aiding in sanctions evasion.
Sanctions Legislation and Its Implications
Gor indicated that US President Donald Trump is expected to make a decision regarding this legislation within the next ten days. The bill, which received 86 votes in the 100-member US Senate, grants the President authority to impose sanctions on countries involved in buying Russian oil and gas. Gor clarified that these provisions are not aimed at any specific country, including India.
He explained that the sanctions options are categorized into three areas: oil, gas, and sanctions evasion. Gor noted that while India falls into one of these categories, the intent is not to punish but to seek an end to the ongoing conflict. He highlighted that India presents significant opportunities for American businesses, given its large market and favorable government stance on foreign investment.
India and the US have been negotiating the proposed bilateral trade agreement since early 2025, focusing on tariff-related issues, non-tariff barriers, and improved market access. India is also advocating for more favorable tariff terms for its exports to the US compared to those available to competing economies.
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