Minister Goyal says India-US trade deal can move ahead once tariff edge is secured

Commerce and industry minister Piyush Goyal on Wednesday said that the first tranche of the proposed India-US Bilateral Trade Agreement (BTA) is ready to be operationalized once the US ensures India enjoys a competitive tariff advantage over countries in its neighbourhood, the ASEAN region and other competing economies.

Addressing reporters on the sidelines of an event in New Delhi, Goyal said the understanding reached after Prime Minister Narendra Modi and US President Donald Trump announced plans for the pact in February can move forward once the tariff framework restores India's competitiveness against rival exporters.

"I have very categorically, on several occasions, expressed confidence that what we have finalized with the United States as the first tranche of the Bilateral Trade Agreement will come into operation as soon as the United States is able to ensure that we get a comparative advantage over our competitors," Goyal said.

Tariff hurdle

Last week, the Trump administration announced a two-tier tariff structure for 60 trading partners under Section 301 of the US Trade Act of 1974, which allows Washington to investigate and respond to what it considers unfair foreign trade practices.

India was placed in the lower 10% tariff band, while competing exporters including China and Vietnam were assigned the higher 12.5% rate, giving Indian exporters a relative tariff advantage in the US market.

On the US Section 301 process, Goyal said it is being conducted by the Office of the United States Trade Representative (USTR), in which India has participated.

"Some tariffs are under investigation and others are under discussion. For us, as long as we have comparative advantage or comparable duties, India will continue to grow its exports and continue to leverage the large US market opportunity," the minister said.

Asked about the US Senate's proposed 100% tariffs on purchases of Russian oil, Goyal declined to comment. “We do not speculate or comment on speculation,” he said.

Broader trade push

Goyal said exporters remain optimistic as India rolls out a series of free trade agreements.

He said the India-UK Free Trade Agreement came into effect on 15 July, giving Indian exports zero-duty access to the UK market. He added that the India-European Union Free Trade Agreement is nearing the end of its legal review and is expected to be placed before the European Parliament after its summer recess.

According to Goyal, the India-EU FTA is expected to come into force in the first quarter of 2027 and would be “game-changing”, opening access to a market of 27 countries with a combined GDP of nearly $20 trillion.

“All of these present huge opportunities for the nation and also present to the world an opportunity to participate in India's growth story—from a $4 trillion economy today to a $30 trillion economy by 2047, when India celebrates 100 years of Independence as a Viksit Bharat,” he said.