By: The Trek News Desk
Clarity is beginning to emerge on the proposed India-United States trade arrangement. Union Commerce and Industry Minister Piyush Goyal said on Thursday, February 5, 2026, that the ongoing negotiations represent the first phase of a broader Bilateral Trade Agreement, and that a joint statement by both countries is likely to be issued within the next four to five days.
Goyal explained that once the joint statement is released, the United States is expected to issue an executive order to reduce tariffs on Indian exports to 18 per cent. Earlier this week, on February 2, Prime Minister Narendra Modi announced, following a phone conversation with U.S. President Donald Trump, that “Made in India” goods would now face a reduced tariff rate of 18 per cent in the American market.
At present, Indian products entering the U.S. are subject to a 25 per cent reciprocal tariff. In addition, an extra 25 per cent duty is levied in connection with India’s purchase of Russian crude oil, posing significant challenges for Indian exporters.
The commerce minister noted that after the joint statement is finalised, it will be followed by a detailed legal agreement. He expressed confidence that the legal framework for the first tranche of the deal will be signed by mid-March. Goyal also clarified that the agreement does not include any investment commitments, as its primary focus is on tariff adjustments and improved market access.
Commerce Secretary Rajesh Agrawal echoed this view, stating that the joint statement would eventually be converted into a binding legal document. “We are hopeful of signing the legal agreement by the middle of March,” he said.
The proposed trade deal is being viewed as a key step in strengthening India-U.S. economic ties. If implemented as planned, it is expected to provide a boost to Indian exports and enhance the competitiveness of Indian products in the U.S. market.
Source: News Agencies
