India and the United States are expected to sign a much-anticipated trade agreement early next week, according to government sources. The deal includes a reduction of reciprocal tariffs by the US to 18 per cent and marks a significant step toward deeper economic cooperation between the two countries. Senior American officials are likely to visit New Delhi for the formal signing. A joint statement outlining the agreement is expected within the next five days.

As part of the arrangement, India will reportedly stop purchasing oil from Russia and commit to buying nearly US$500 billion worth of energy and technology products from the United States over time. The agreement is being viewed as a foundation for a broader long-term trade framework. Officials believe it could help boost bilateral trade volumes to US$500 billion by 2030.

Government sources have emphasised that India’s price-sensitive sectors, particularly agriculture, dairy, and fisheries, have been adequately protected. These sectors employ crores of people, including small and marginal farmers, and were a major point of contention during negotiations. India firmly declined requests for greater US access to these markets, citing livelihood concerns.

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The announcement of the deal has triggered criticism from opposition parties, who have raised concerns over the lack of transparency in negotiations. Questions have been asked about implementation timelines and alternative energy sourcing. Opposition protests have also disrupted parliamentary proceedings, limiting detailed discussion on the agreement.

Commerce Minister Piyush Goyal has defended the deal, stating it will support domestic manufacturing, design, and the MSME sector. He highlighted that the revised tariff rate would be among the lowest applied by the US to major exporting nations. Officials have also pointed to similar trade agreements signed in 2025, noting that no compromises were made on sensitive sectors in those deals either.

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