India–U.S. Trade Deal First Tranche Ready; Formal Agreement Targeted By Mid-March

India is set to implement the first tranche of its Bilateral Trade Agreement (BTA) with the U.S. within the next few days, Union Commerce and Industry Minister Piyush Goyal said on Thursday. He said tariff reductions under the initial phase will take effect after a joint India-U.S. statement is signed and an executive order is issued.
Joint Statement And Tariff Rollout Timeline

Goyal said the joint India-U.S. statement is expected to be released and signed within four to five days. Following the statement, reciprocal tariffs on Indian exports to the U.S. will be reduced to 18%, according to the minister. He added that the formal and comprehensive trade agreement between the two countries is targeted for signing by mid-March. The comments were shared through official statements from the Ministry of Commerce and Industry.

Ninth Trade Agreement For India

The minister said the first tranche of the India–U.S. BTA will become India’s ninth major trade agreement. India has already concluded eight trade agreements so far, according to the commerce ministry. He said the initial tranche is designed to provide immediate relief to businesses through tariff reductions, while negotiations continue for a broader and more detailed pact.

GCC Free Trade Talks Revived

Goyal also announced that India is signing the terms of reference for a free trade agreement with the Gulf Cooperation Council. He said negotiations with the GCC, which have remained inconclusive for nearly two decades, are being revived. India’s bilateral trade with the GCC currently stands at $179 billion, as per data cited by the Ministry of Commerce and Industry.

He said a comprehensive agreement with all six GCC member countries would support trade flows and improve policy predictability. According to the ministry, sectors such as food processing and petrochemicals are expected to benefit from tariff rationalisation under future agreements.

Background Of India–U.S. Trade Discussions

The minister’s remarks come days after U.S. President Donald Trump said that India and the U.S. had reached a trade understanding following a phone call with Prime Minister Narendra Modi. Trump said reciprocal tariffs on Indian imports into the U.S. would be reduced from 25% to 18%, according to public statements.

Separately, Goyal told the Lok Sabha that negotiating teams from India and the U.S. have held regular discussions over the past year to finalise a balanced bilateral trade agreement. He said the talks involved engagement at multiple levels to address a wide range of issues, while safeguarding sensitive sectors, as per parliamentary records.