India-US Trade Deal Nears Completion: First Tranche Ready, Joint Statement in Sight

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India and the United States are making significant progress on their trade deal. Union Minister Piyush Goyal announced on Thursday that the first tranche of the bilateral agreement is nearly ready. He expressed hope that a joint statement could be finalized and signed within the next four to five days. The agreement, which has been under negotiation since Prime Minister Narendra Modi's visit to the US in February, is expected to benefit both countries. Goyal described India and the US as complementary economies, stating that a trade deal would be mutually beneficial. The reduction in tariffs, including the 18% rate, is set to be implemented through an executive order by the US after the joint statement is announced. Commerce Secretary Rajesh Agrawal clarified the process, explaining that the US tariffs are executive tariffs, whereas India's are Most Favoured Nation (MFN) tariffs. This means that India's MFN tariff reduction can only occur after the legal agreement has been signed. India's engagement with the US is substantial, with orders for US aircraft and engines expected to exceed USD 100 billion. The signing ceremony for the Terms of Reference (ToR) of a Free Trade Agreement (FTA) between India and the Gulf Cooperation Council further highlights the country's commitment to trade agreements. A formal agreement is being drafted and is expected to be signed by mid-March. The development is seen as a positive step towards strengthening economic ties between India and the US.