India–US interim trade deal likely to become operational in April: Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal on Friday said the interim trade agreement between India and the United States is likely to become operational in April this year.

He also indicated that India’s free trade agreements (FTAs) with the United Kingdom and Oman are expected to be implemented in April, while the trade pact with New Zealand is likely to come into force in September.

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A three-day meeting between Indian and US officials to finalise the legal text of the interim trade agreement is scheduled to begin in the United States on February 23.

Both countries have issued a joint statement on the interim trade framework, which focuses on reducing select tariffs, strengthening energy trade and expanding overall economic cooperation.

Under the interim arrangement, both sides are expected to grant duty concessions on a range of goods. The United States has indicated it will reduce reciprocal tariffs on Indian products from 25 per cent to 18 per cent and has already removed the 25 per cent punitive tariffs imposed on India over its purchases of Russian crude oil.

As part of the agreement, India has agreed to purchase goods worth 500 billion US dollars from the United States over a period of five years. These include oil and gas, coking coal, aircraft and aircraft parts, precious metals, and advanced technology products.

The minister emphasised that India’s expanding network of free trade agreements has significantly improved market access for Indian exporters.

He noted that nearly 70 per cent of global GDP and two-thirds of global trade are now accessible to India through nine concluded FTAs, including the first tranche of the bilateral trade agreement with the United States. These agreements provide preferential access to Indian businesses across sectors in 38 developed and emerging economies.

Goyal added that India is now engaging with developed economies with greater confidence, while safeguarding sensitive sectors and securing gains in areas where the country has competitive strength.