India-US trade deal: First phase finalised, legal drafting under way, says Piyush Goyal

Commerce and industry minister Piyush Goyal said on Thursday that the India-US trade deal has cleared its first phase and moved to the legal drafting stage while expressing hope that the process would be completed soon. The pact would be operationalised once India gains a competitive advantage over its peer countries, he said.

“US bilateral trade agreement’s first tranche has been finalised and it is going through final contours, the legal drafting and we hope to be able to finalise that soon and operationalise that once we get the competitive advantage over our peer countries,” Goyal said while addressing the SRCC Centenary Conclave in Delhi.

India and the US have held prolonged negotiations over a bilateral trade agreement. The two countries had announced a framework for an interim trade deal in February, but the agreement has not yet been operationalised.

Goyal had earlier said that changing global circumstances would need to be taken into account while finalising the pact. He described India-US relations as “very good” and said he did not see any problem in bilateral ties, despite the delay in concluding the trade agreement.

Goyal has repeatedly maintained that India needs to secure a competitive position for its exporters in the US market before the agreement is implemented.

India-EU trade deal expected in December

Goyal also shared that the India-European Union free trade agreement would be signed in December and come into force in February or March next year.

India and the 27-member European Union had announced the conclusion of negotiations for the trade pact earlier this year. The agreement is expected to deepen trade ties and improve market access for businesses on both sides.

The proposed India-EU pact is part of India's broader efforts to expand trade ties with major economies amid changes in global trade and tariff policies.

India and the US have been negotiating a proposed bilateral trade agreement since early 2025.

India has been pushing for more favourable tariff terms for its exports to the US than those available to competing economies.

‘Incredible’ pace of negotiations, says US Ambassador Sergio Gor

Earlier in the day, US Ambassador to India Sergio Gor also said that the two nations have cleared the major items on their trade deal checklist. Gor described the pace of negotiations as “incredible.”

Gor also spoke about the US legislation that could pave the way for sanctions on countries purchasing Russian oil and gas or helping others evade sanctions. He said US President Donald Trump was expected to decide on the matter within the next 10 days. Gor said the provisions were not aimed at any particular country, including India.

“...We have ongoing discussions on that as it passed with overwhelming bipartisan support. That law got 86 votes out of 100 in our Senate... These sanctions options that Congress passed, they are not targeted at any individual country. It is three different buckets; one is oil, the second is gas, the third is sanctions evasion.”

Gor said the intention was to end the war rather than punish any country.

“It just happens that India does fall in one of those buckets, along with a lot of other countries. The goal is not to punish anyone. The goal is to try to bring an end to this war. I do think the president will make a determination on that over the next few days.”

Gor said India offered significant opportunities for American businesses, citing the size of its market and the government’s approach to foreign investment.