Daijiworld Media Network - New Delhi
New Delhi, Feb 21: An interim trade agreement between India and the United States is likely to be signed in March and operationalised in April, Union Commerce and Industry Minister Piyush Goyal said on Friday, February 20, 2026.
He also indicated that India’s free trade agreements with the United Kingdom, Oman and New Zealand are progressing on schedule. While the pacts with the U.K. and Oman are expected to be implemented in April, the agreement with New Zealand may come into force in September. The 27-nation European Union has also conveyed its intent to operationalise its trade deal with India at the earliest, he added.
Mr Goyal further stated that India and Canada are in the process of finalising the terms of reference for a proposed trade pact.
Earlier this month, India and the U.S. released a joint statement outlining the framework for the first phase of a bilateral trade agreement. The chief negotiators of both nations are set to meet in Washington from February 23 for a three-day round of talks to finalise the legal text of the interim agreement.
The Indian delegation will be led by chief negotiator Darpan Jain, a Joint Secretary in the Commerce Ministry. U.S. Trade Representative Jamieson Greer is expected to visit India in March for the formal signing of the pact.
Speaking at the AI Impact Summit in New Delhi, U.S. Ambassador Sergio Gor said the India-U.S. trade agreement is likely to be inked soon.
India on Friday also joined the U.S.-led strategic alliance Pax Silica aimed at building a resilient supply chain for critical minerals.
Under the proposed pact, both sides would extend duty concessions on several traded goods. The U.S. has announced a reduction in reciprocal tariffs on Indian goods from 25 per cent to 18 per cent and has already removed the 25 per cent punitive tariff imposed over India’s purchase of Russian crude oil. This move brings significant relief to Indian exporters who were facing combined tariffs of up to 50 per cent.
Mr Goyal expressed hope that the U.S. administration would issue an executive order this month to formalise the reduction to 18 per cent.
Launching seven components of the Rs 25,060-crore Export Promotion Mission, the minister said the agreement would open vast opportunities for Indian exporters, while safeguarding sensitive sectors such as agriculture.
He said labour-intensive sectors including apparel, leather and marine exports had been severely impacted by high tariffs. With the reduction to 18 per cent, Indian goods would enjoy one of the lowest tariff rates among emerging and developing economies.
Hitting back at Congress leader Rahul Gandhi for criticising the deal, Mr Goyal said exporters were adversely affected under the earlier tariff regime. Mr Gandhi had questioned why India agreed to increase imports from the U.S. by Rs 100 billion annually without adequate reciprocal benefits.
Responding to the criticism, Mr Goyal said businesses and jobs in sectors such as Tirupur’s apparel industry, leather manufacturing and marine seafood exports had suffered under the 50 per cent tariff burden.
The minister said the agreement would boost exports of gems and jewellery and spices. On imports, he pointed out that India requires high-tech products such as GPUs, coking coal and aircraft from trusted partners to sustain economic growth.
India has committed to purchasing $500 billion worth of U.S. energy products, aircraft and parts, precious metals, technology products and coking coal over the next five years, according to the joint statement.
Mr Goyal maintained that India has protected its sensitive and defensive interests while ensuring consumer benefits. He added that high-end pharmaceutical products and advanced medical devices would become available at lower or zero import duty, benefiting 1.4 billion consumers.
With the revised tariff structure, India now faces comparatively lower reciprocal tariffs than several competing nations, including China, Thailand, Myanmar, Cambodia, Indonesia, Brazil and Vietnam, positioning Indian exporters more competitively in the U.S. market.