New Delhi: India and the United States are preparing to sign a major trade agreement in March, a move expected to significantly reduce tariffs and strengthen economic ties between the two countries.
India’s Commerce and Industry Minister Piyush Goyal said a joint statement on the agreement is likely to be issued in the coming days. This will be followed by initial tariff reductions by the US, while India will begin its own tariff cuts after the legal text of the deal is formally signed.
According to officials, the agreement aims to give Indian exports improved access to the US market through lower import duties. At the same time, India will reduce tariffs on selected American goods, including industrial products and some agricultural items, while continuing to protect certain sensitive farm sectors.
Recent reports indicate that the US plans to cut average tariffs on Indian goods sharply, compared to existing levels. In return, India has agreed to expand its purchases from the US, including energy products, aircraft and defence equipment, over the coming years.
The deal is part of a broader effort by both governments to reset trade relations after years of disputes over tariffs and market access. It also reflects closer cooperation between India and the United States under the current US administration led by Donald Trump.
Trade analysts say the agreement could boost bilateral trade, support exporters and improve investor confidence in both countries. However, some details, including the full list of products covered and the pace of tariff cuts, are still being finalised.