Mumbai — The proposed India-U.S. trade deal has been “more or less” finalized, with both countries now working on a framework for preferential market access before formally signing the agreement, Commerce Secretary Rajesh Agrawal said Wednesday.
Speaking to reporters on the sidelines of the Global Fintech Fest 2026, Agrawal said a few issues remain under discussion but indicated that negotiations are at an advanced stage.
“There are few things which both sides are discussing, but it will be signed at an appropriate time,” Agrawal said.
He said the two countries need to establish a mechanism that ensures preferential access to each other’s markets under the proposed agreement.
Agrawal said India largely operates under most-favored-nation tariffs, while the United States is currently using executive tariffs, making it necessary to create an architecture that establishes tariff differentials and provides preferential access for Indian businesses.
He added that businesses in both countries are already engaging actively and are satisfied with the broad understanding reached between the two governments.
Agrawal also provided updates on India’s trade negotiations with other countries. He said the India-Chile free trade agreement has reached its final stage, although discussions continue in some areas, with progress expected over the next two to three months.
India is also seeking to bring its free trade agreement with New Zealand into effect “as soon as possible,” with October a possible timeline, Agrawal said.
Addressing concerns over rising freight costs and their impact on exporters, he said the government is working closely with exporters to ensure adequate access to ships and containers while reducing cargo delays and logistics costs.
Despite higher freight costs, India’s exports grew by more than 15% during the first four months, suggesting that the impact of elevated shipping expenses has so far been lower than initially expected.
Agrawal also called for greater diversification of India’s services exports beyond information technology and IT-enabled services and professional services to sustain long-term growth.
India’s total exports stood at about $863 billion in 2025-26, with services contributing approximately $421 billion. IT and IT-enabled services account for nearly half of the country’s services exports, while professional services contribute another 30%.
“So these are the two pillars on which our services exports are based right now but it needs diversification if we have to grow and if we have to grow sustainably for a long period of time, we need diversification,” Agrawal said. (Source: IANS)
