India-US Trade: Indian Delegation to Finalise Legal Terms

The proposed India-US Trade Agreement 2026 is entering its decisive phase, with Commerce Secretary Rajesh Agrawal announcing that a high-level Indian delegation will travel to Washington next week to finalise the legal framework of the much-anticipated pact.

The delegation, led by Joint Secretary Darpan Jain, who serves as India’s chief negotiator for the talks, will depart for the United States on February 23. The visit marks a critical step toward formalising the agreement, which both countries expect to sign and implement in March.

India-US Trade: From Framework to Legally Binding Pact

Addressing reporters on Monday, Agrawal said discussions between the two sides are already underway through virtual engagements. The upcoming visit to Washington will focus on converting the broad framework into a legally binding agreement.

“There have been virtual engagements going on with the US, and next week the chief negotiator will lead a delegation to finalise the legal framework,” Agrawal said, adding that the joint statement issued earlier outlines the contours of the deal.

The joint statement, released earlier this month, lays down the core principles and tariff adjustments agreed upon by both nations. Officials are now working to translate those contours into precise legal language that will anchor the India-US Interim Trade Agreement 2026 in enforceable terms.

Major Tariff Reductions Announced

Under the agreed framework, the United States will reduce tariffs on Indian goods from 50 percent to 18 percent across a wide range of sectors. The tariff cuts are expected to provide immediate relief and enhanced market access to key Indian industries.

Sectors set to benefit include:

• Textiles and apparel

• Leather and footwear

• Plastic and rubber products

• Organic chemicals

• Home décor and artisanal goods

• Select machinery segments

In the next phase, following successful implementation of the interim pact, tariffs on products such as generic pharmaceuticals, gems and diamonds, and aircraft parts are also expected to be eliminated entirely.

Trade analysts believe this calibrated approach could significantly strengthen India’s manufacturing exports while giving US importers access to competitively priced goods.

India-US Trade: India’s Concessions with Safeguards

On its part, New Delhi has agreed to eliminate or reduce tariffs on several American industrial products and agricultural goods. These include dried distillers’ grains, tree nuts, fresh and processed fruits, soybean oil, and wine and spirits.

However, the government has drawn a clear red line around sensitive sectors. Agricultural and dairy products such as wheat, rice, maize, milk, poultry, and certain vegetables will remain protected under the agreement.

Officials have emphasised that while India is pursuing greater reciprocity, it will not compromise on farmer welfare or food security.

A Step Toward a Broader Bilateral Trade Agreement

The India-US Interim Trade Agreement 2026 is seen as a stepping stone toward a more comprehensive Bilateral Trade Agreement (BTA). That broader negotiation process was launched in February 2025 by Prime Minister Narendra Modi and US President Donald Trump, following months of trade tensions between the two nations.

Both sides have reiterated their commitment to deepen economic engagement, streamline market access, and resolve long-standing trade irritants.

Trade Data Reflects Expanding Economic Ties

Alongside the announcement, the commerce ministry released updated trade data that underscores the growing scale of India’s global trade footprint.

India’s total exports of merchandise and services in January 2026 reached USD 80.45 billion, compared to USD 71.09 billion in January 2025. Imports rose to USD 90.83 billion from USD 76.48 billion during the same period last year.

The overall trade deficit widened to USD 10.38 billion, up from USD 5.39 billion a year earlier.

Agrawal highlighted that cumulative exports from April to January of the current financial year are estimated at USD 720.76 billion, compared to USD 679 billion in the corresponding period last year — reflecting a growth of 6.15 percent, or nearly USD 40 billion.

The government believes that the India-US Interim Trade Agreement 2026 could further accelerate export growth by unlocking new opportunities in high-value sectors and stabilising trade flows between the world’s two largest democracies.