India and U.S. Trade Pact Expected to Launch by April 2026

India and the United States are poised to implement an interim trade agreement by April 2026, as announced by Union Commerce and Industry Minister Piyush Goyal. During a press briefing, Mr. Goyal revealed that the trade pact is likely to be signed in March. To prepare for this, negotiators from both nations will gather in Washington for a three-day meeting starting on February 23, 2026, where they will work on finalising the legal text of the agreement.

The interim trade deal has been welcomed as a substantial step in enhancing bilateral trade relations. As part of the agreement, the U.S. has committed to reducing certain tariffs on Indian goods from 25% to 18%. This move is expected to provide significant relief to Indian exporters who have previously faced steep tariffs, particularly in sectors such as apparel, leather, and seafood.

Mr. Goyal noted that the U.S. has also lifted punitive tariffs on Indian imports of Russian crude oil, signalling a shift in trade dynamics that could benefit various sectors within India. He highlighted that the trade agreement presents considerable opportunities for Indian exporters, especially as the country has taken steps to protect sensitive sectors, including agriculture.

The agreement has taken strides to ensure that while tariffs on Indian exports decrease, India's defensive interests remain intact. "We ensure that we open our market for consumer benefit," Mr. Goyal remarked. He also pointed out that under the new arrangement, commodities traded between the two nations will see duty concessions, fostering a healthier trade environment.

In addition to the U.S. agreement, Mr. Goyal indicated that India is also progressing with its free trade agreements with the United Kingdom and Oman, both expected to go live in April. Furthermore, a deal with New Zealand may be established by September. The European Union is also pushing for a swift arrangement regarding their trade agreements with India.

Moreover, Mr. Goyal confirmed that negotiations for a trade pact with Canada are underway, enhancing India's strategic trade partnerships across the globe. The evolving trade landscape suggests that India is seeking to strengthen its economic ties globally while ensuring competitive conditions for its domestic industries.

Criticism of the interim trade agreement was voiced by Congress leader Rahul Gandhi, who questioned why India would agree to increase U.S. imports significantly without reciprocal commitments. In response, Mr. Goyal defended the agreement, stating that it would positively impact industries such as gems and jewellery, among others, bolstering India's economic growth.

With the aim of fostering a resilient supply chain, India has also joined the U.S.-led strategic alliance Pax Silica. This initiative focuses on critical minerals, which are vital for various industries, further solidifying the relationship between the two nations.

The forthcoming trade agreement has generated optimism within Indian trade circles, as stakeholders anticipate a boost in exports and overall economic expansion under the new terms. As the talks progress, both Indian and U.S. officials are dedicated to ensuring that the agreement is in place to enhance mutual economic interests.