- India-US trade deal first tranche expected by March 2026, says Commerce Secretary
- Legal text finalization and virtual talks ongoing between both sides
- Tariffs to reduce from 25% to 18%, announcement expected this week
The first tranche of the India-US trade is expected to concluded by March 2026, accordIng to Commerce Secretary Rajesh Aggarwal.
Both sides are finalising the legal text, with virtual engagements ongoing, as per Aggarwal. India's Chief Negotiator Darpan Jain is also set to lead a delegation to the US to work on the next tranche, he stated at a press conference.
The officials also expect the final order for the reduction of tariffs from 25% to 18% to be announced this week. All other parts of the deal, which incllude product-wise tariffs relaxations, will kick in after the framework is signed.
Both sides are trying to meet the April deadline for free trade agreement operationalisation, according to Aggarwal.
Digital trade will not a part of the interim deal with the US, sources told NDTV Profit. It will be discussed only for the full bilateral trade agreement. A White House factsheet had earlier stated that India will remove its digital services tax, before omitting the reference in a fresh statement.
The sources further said that Indians would have to wait for final legal agreement for line-wise details on the status of pulses.
AI chips and data centre-related purchases from the US will be part of the $500 billion intent.
India is diversifying its energy basket by importing more from the US, the offcials said. The country also has a diversified import basket for precious metals from the UAE, to import more from the US. India's non-marine agri exports are valued at $1.3 billion in surplus from the US, while the former exports agricultural products worth $2.8 billion and imports worth $1.5 billion.
Any agricultural items coming into India will still have to meet the country's biosecurity standards, the officials said.
Import of genetically modified food products into India still remains off the deal with regards to the trade deal. Any imports of select agri-products from the US subject will be subject to quotas, the officials stated.
India and Canada are also engaging to finalise terms of reference for trade deal.
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