India and US near trade pact; preferential access and remaining issues under discussion

Mumbai: The proposed India-US trade pact is largely finalised, with only a few issues still under discussion, Commerce Secretary Rajesh Agrawal said. The agreement will be signed at an appropriate time after both sides complete the remaining negotiations.Preferential Access Under DiscussionAgrawal said every trade agreement must provide some form of preferential market access to the participating countries.India currently operates under most favoured nation tariffs, making it comparatively easier to offer concessions. However, the US relies on executive tariffs and is developing an architecture to establish tariff differentials and extend preferential access to India.Commerce Minister Piyush Goyal has said details of the Bilateral Trade Agreement will be announced once Washington offers India more favourable terms than its competitors.The US imposed an additional 10% import duty, over and above its standard tariff, on several countries, including India, from July 24 under a Section 301 investigation concerning forced labour.Bilateral Trade Continues To GrowIndia’s merchandise exports to the US rose 3% to $34.5 billion during April-July FY27. Imports from the US increased 22.42% to $22.12 billion over the same period. Piyush Goyal Defends India's 7.8% GDP Growth Rate, Slams Opposition For Spreading 'Negative Thinking' | VideoIndia and the US announced the framework for the pact’s first phase in February. Subsequent changes to the American tariff regime, however, prompted further negotiations.Goyal is scheduled to visit the US later in September for the G20 Trade Ministerial in Milwaukee. He is also expected to hold bilateral discussions with US Trade Representative Jamieson Greer.Other Trade AgreementsAgrawal said negotiations for the India-Chile Comprehensive Economic Partnership Agreement were in their final stages. Both sides hope to overcome the remaining differences within two to three months. India’s Economic Rise Expected To Boost New Zealand’s Gains From Free-Trade Deal: ReportThe India-New Zealand free trade agreement, signed on April 27, is expected to take effect in October.More than 2,000 business representatives, including over 900 international delegates, will attend the BRICS meeting, offering companies opportunities to build partnerships and expand trade across member countries.

India and the United States are nearing a trade deal, focusing on preferential market access. Other trade agreements with Chile and New Zealand are also progressing well. India aims to diversify its services exports beyond IT and professional sectors. The nation sees significant growth potential in its fintech and e-commerce sectors. Reducing remittance costs offers substantial benefits for migrant workers globally.