India and US Reach Agreement on Bilateral Trade Pact

Indian Commerce and Industry Minister Piyush Goyal announced on September 24 that a bilateral trade agreement with the United States is "done and dusted." While the pact is essentially finalized, Goyal noted that final execution depends on India securing a competitive advantage within the American market to ensure the deal benefits the Indian economy.

These developments follow a period of rapid negotiation. On September 22, Goyal described talks as moving in a positive direction, even as President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. This legislation allows the U.S. to impose tariffs of up to 100% on major purchasers of Russian oil and gas, including India. Goyal stated that India would study the details of these potential tariffs before responding.

Goyal is scheduled to meet U.S. Trade Representative Jamieson Greer at the G20 Trade Ministerial in Milwaukee, Wisconsin, from September 30 to October 1 to discuss the pact's progress.

Beyond the U.S. deal, India is expanding its global trade network. Goyal highlighted recent gains from an India-EU agreement, including a USD 500 million climate finance commitment and zero-duty access for over 90 percent of steel exports. India is also advancing negotiations with Canada, Mexico, and the Gulf Cooperation Council, while continuing to avoid a free trade agreement with China by remaining outside the Regional Comprehensive Economic Partnership.