India US trade deal statement soon, legal pact mid March
The minister said US tariffs on India will drop to 18 percent, while India cuts duties only after signing the final agreement
India and the United States are close to the next step in their trade talks. Commerce Minister Piyush Goyal said both sides will finalise and sign a joint statement within the next four to five days. The statement will cover the first part of a Bilateral Trade Agreement.
Mr. Goyal shared the update on Thursday, February 5, 2026. He said the joint statement is an important move and will set the tone for what comes next. According to him, this step shows that talks between the two countries are moving at a steady pace.
One major point in the announcement was about tariffs. Mr. Goyal said the United States will cut tariffs on Indian goods from 50 percent to 18 percent. This reduction will not need a long legal process. It will be done through an executive order signed by the US President soon after the joint statement is issued.
He explained that this order will take effect quickly. Once the statement is made public, the tariff cut is expected to follow without delay. This is seen as a positive sign for Indian exporters, especially those who have been facing high duties in the US market.
India’s position is different. Mr. Goyal made it clear that India cannot lower tariffs right away. Under Indian law, tariff cuts require a signed and formal trade agreement. Until that happens, India must wait.
Commerce Secretary Rajesh Agrawal supported this point. He said India will be legally allowed to reduce tariffs on US imports only after the final agreement is signed. Both officials said this signing is expected to take place in mid March.
The gap in timing has raised some questions. However, officials said this difference is based on how laws work in each country. The US President can act through an executive order. India, on the other hand, needs a completed legal process.
Mr. Goyal said there is nothing unusual about this. He said trade agreements often move in stages. First comes intent. Then comes the legal text. After that, both sides act.
He also said the first tranche of the trade deal is only the beginning. More talks will follow. Future rounds may cover more sectors and deeper tariff cuts.
The trade talks come at a busy time for India. Just days ago, India closed a free trade pact with the European Union. It has also signed a trade deal with the US recently. Officials say this shows India is pushing hard to grow trade with major partners.
Experts say the US tariff cut could help Indian industries like textiles, engineering goods, and chemicals. Lower duties may make Indian products more competitive in the American market.
At the same time, India is being cautious. Officials want to ensure that any tariff cuts on US goods protect local industries. This is why the legal agreement matters so much.
For now, all eyes are on the joint statement. If issued as planned, it will mark another step forward in India US trade ties. The final agreement in mid March will then decide how far this partnership can go.