India’s Commerce and Industry Minister, Piyush Goyal, stated on 18 November 2025 that a long-awaited trade agreement with the United States will be announced once the terms are "fair, equitable and balanced," signalling progress in negotiations that have been ongoing since March. Speaking at the Indo-US Economic Summit in New Delhi, Goyal emphasised that India would protect the interests of its farmers and fishermen in the deal, according to a report by Business Today.
"When the deal will become fair, equitable and balanced, you will hear good news," Goyal said. He clarified that trade negotiations are a continuous process and that India's focus remains on ensuring all sectors, including agriculture and small industry, are adequately protected. The two nations have completed six rounds of talks on the proposed bilateral trade pact.
Focus On Reciprocal Tariffs
The core of the initial agreement appears to be centred on resolving tariff disputes. On 17 November, Commerce Secretary Rajesh Agrawal revealed that the US and India were close to finalising a package on reciprocal tariffs, which would form the first part of the broader trade deal. Agrawal stated that "the first tranche of the bilateral trade deal will address the reciprocal tariffs," though he did not provide a specific timeline for its completion.
This initial phase aims to resolve issues such as the 50 per cent tariff on Indian goods imposed by the US, which includes a 25 per cent penal tariff linked to India's purchase of Russian crude oil. In return, the US is seeking improved market access for its goods into India. Officials familiar with the discussions indicated that further rounds of negotiation may not be necessary, suggesting a final agreement is imminent.
Market Access And Export Data
Reports suggest that a key concession from India will involve allowing duty-free imports of US soyabean and corn, with the latter intended for ethanol production. The focus of the talks is now on finalising the range for reciprocal tariffs, with figures between 12 and 19 per cent under discussion.
While the trade pact advances, recent trade data shows a mixed picture. India's merchandise exports to the US dipped to USD 6.31 billion in October 2025, down from USD 6.9 Bn in the same month last year. However, cumulative exports for the April–October period stood at USD 52.12 billion, a 10.15 per cent increase compared to the USD 47.32 billion recorded in the same period in 2024.
The key takeaways from the recent developments are that India is maintaining a firm stance on securing a balanced trade deal that protects its domestic sectors, the negotiation breakthrough is likely to come from a reciprocal tariff agreement, and India's broader trade relationship with the US remains robust despite monthly fluctuations. |
