India and the United States are moving closer to finalising the first phase of an interim trade agreement, with both sides working to resolve outstanding issues, Commerce and Industry Minister Piyush Goyal said on Friday. The proposed arrangement is expected to be executed by mid-next month, marking an initial step toward a broader bilateral trade framework between the two countries.
Goyal stated that recent discussions between Indian officials and a visiting US delegation from June 2 to June 4 have helped accelerate progress on the agreement. He noted that he also met the American representatives during their visit, adding that negotiations are now focused on closing remaining gaps in the draft framework. According to him, both sides are actively engaged in ironing out technical and policy-level details before moving ahead with implementation.
Describing the upcoming agreement as a “very, very vibrant” first tranche, the minister said it would serve as an initial component of a larger bilateral trade pact. He added that this phase is expected to provide preferential market access for India compared to several competing economies, potentially strengthening India’s export position in key sectors. However, he did not specify the exact sectors or tariff lines under discussion.
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Goyal further indicated that a high-level US delegation is expected to visit India later this month to continue negotiations and review progress. Officials from both sides are reportedly working through a structured timeline to ensure that the foundational elements of the agreement are ready for execution within the proposed timeframe of mid-next month.
The India-US trade relationship has expanded significantly in recent years, with both countries seeking deeper economic engagement across goods, services and strategic supply chains. The interim agreement is seen as a stepping stone toward a more comprehensive trade deal, aimed at reducing barriers and enhancing cooperation in areas of mutual interest, including technology, manufacturing and market access.
If finalised on schedule, the first phase of the pact would mark a key milestone in ongoing efforts to strengthen economic ties between New Delhi and Washington, while setting the stage for more extensive negotiations in the future.
Also Read: Piyush Goyal Confirms 99% Progress On India-US Trade Deal First Phase