India-US trade pact must reflect 'changed circumstances', says Piyush Goyal

Talks for the first phase of the India-US bilateral trade agreement are navigating a shifting landscape, with final terms set to adapt to new realities. While an interim framework was initially announced in February, evolving tariff dynamics and legal nuances have kept negotiators at work on the fine print.

“Thodi paristhitiyan badli hain, usko abhi madde nazar rakhte hue final hoga. (Some circumstances have changed; the final decision will be made keeping that in mind),” Commerce Minister Piyush Goyal said in New Delhi while addressing members of PHDCCI.

The remarks follow recent discussions between Goyal and US Trade Representative Jamieson Greer on the sidelines of the G20 trade ministers’ meeting in Milwaukee. While Greer noted that a deal was not imminent and Union Finance Minister Nirmala Sitharaman indicated that talks had reached a plateau, engagement across multiple international fronts continues to move forward.

Although India and the US finalised the framework for the first phase of their Bilateral Trade Agreement (BTA) in February, subsequent legal and regulatory shifts in Washington have altered the ground realities.

Under the original agreement reached earlier this year, the US had agreed to eliminate the 25% penalty on India for purchasing Russian oil and lower the reciprocal tariff rate on Indian goods to 18%.

However, the tariff structure was upended on February 20, when the US Supreme Court struck down Washington’s reciprocal tariffs imposed under the International Emergency Economic Powers Act. Following the ruling, the US introduced a blanket 10% tariff applicable to all countries for a 150-day period on February 24, introducing new variables into the ongoing bilateral negotiations.

The primary focus remains on securing a comparative advantage for Indian goods in the American market, ensuring lower tariffs compared to competing nations. Speaking at the ET Startup Awards 2026 in Bengaluru, Goyal had emphasised that hammering out these details requires specialised human expertise rather than automated tools.

Beyond the US, India is pursuing trade agreements with Israel, Chile, the Gulf Cooperation Council, and the Eurasian Economic Union, alongside faster-paced discussions with Canada, upcoming talks with Mexico, and negotiations with the South African Customs Union. Trade ministers from the UK and Canada are scheduled to visit India next week.