First Tranche of Trade Agreement Between India and US to be Signed by Mid-March

India and the United States are preparing to formalise a trade agreement, with the first tranche expected to be signed by mid March. The development was confirmed by the Commerce and Industry Minister Piyush Goyal following discussions between the 2 countries. 

Timeline for India US Trade Agreement 

On February 5, 2026, the Commerce and Industry Minister stated that a joint statement between India and the United States is expected to be signed within 4 to 5 days.  

Based on this joint statement, a legally binding trade agreement will be drafted and finalised within approximately 1 to 1.5 months. 

Joint Statement and Formal Agreement Process 

The joint statement will serve as the foundation for the formal trade agreement. Once drafted, the agreement is planned to be signed by mid March. The process involves virtual signing of the joint statement followed by formal legal procedures. 

Tariff Adjustments After Joint Statement 

After the joint statement is signed, tariffs imposed by the United States on Indian products will be reduced to 18% from 50%. This change will be implemented through a White House executive order. 

India will reduce tariffs on mutually agreed products after the formal agreement is signed, as per the terms of the trade arrangement. 

Background of the Trade Negotiations 

The renewed momentum follows an announcement by the US President earlier this week confirming that the trade deal with India had been agreed upon.  

The negotiations gained urgency after the US imposed 50% tariffs on several Indian exports over 5 months ago, including a 25% duty linked to India’s purchase of Russian oil. 

Read More: India-US Trade Agreement Set to Boost Pharmaceutical and Medical Device Exports! 

Trade Relationship Between India and the US 

The United States is India’s largest export destination. During FY 2024,25, India exported goods worth $86.5 billion to the US, while imports from the US stood at $45.6 billion. 

Conclusion 

The planned signing of the first tranche of the India US trade agreement reflects ongoing efforts to formalise bilateral trade arrangements and implement agreed tariff revisions within a defined framework. 

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