India-U.S. trade deal: Joint statement in ‘four to five days’, legal agreement by mid-March, says Piyush Goyal

By Admin

06 Feb, 2026

India and the United States are moving closer to formalising the first tranche of a long-anticipated Bilateral Trade Agreement (BTA), with a joint statement expected to be finalised and signed within the next four to five days. Commerce and Industry Minister Piyush Goyal confirmed the timeline on Thursday, February 5, 2026, highlighting that the legal and formal agreement is likely to be signed by mid-March.

The development signals a significant step forward in India-U.S. trade relations, with immediate tariff relief for India and longer-term structural changes expected once the legal framework is completed.

Talks near completion for first tranche

Speaking to reporters, Mr. Goyal said that “meaningful talks” are currently underway between the two countries based on decisions announced by their leaders. According to him, the first tranche of the Bilateral Trade Agreement is nearly ready, and the joint statement is the final political step before implementation begins.

While the joint statement will outline agreed positions and commitments, the Commerce Minister clarified that the detailed legal agreement is being prepared in parallel and will take additional time to finalise.

U.S. tariffs to drop to 18% after joint statement

One of the most immediate outcomes of the joint statement will be a sharp reduction in U.S. tariffs on Indian goods. Mr. Goyal confirmed that U.S. tariffs on India will come down from 50% to 18%, implemented through an executive order issued by the U.S. President after the joint statement is signed.

This is possible because U.S. tariffs in this context are executive in nature and can be modified without legislative approval, allowing faster implementation once political consensus is reached.

India’s tariff cuts tied to legal agreement

India, however, will only be able to reduce tariffs on U.S. imports after the legal and formal agreement is signed. Commerce Secretary Rajesh Agrawal explained that this distinction is due to India’s tariff structure.

India follows Most-Favoured Nation (MFN) tariffs under the rules of the World Trade Organisation, which means tariff reductions require a legally binding agreement. Once the joint statement is converted into a formal treaty-level document, India will gain the authority to implement its side of tariff concessions.

Formal agreement targeted for mid-March

Both Mr. Goyal and Mr. Agrawal reiterated that India has followed a similar process in previous free trade agreements, where negotiations conclude with a joint statement that is later translated into a legal text.

The Commerce Ministry estimates that the formal agreement will be signed by mid-March 2026. Until then, only the U.S. tariff reductions will take effect, while India’s commitments will remain on hold from a legal standpoint.

$500 billion import commitment from the U.S.

Addressing India’s commitment to purchase $500 billion worth of goods from the U.S. over the next five years, Mr. Goyal said the figure is closely aligned with India’s growth trajectory and future needs. He pointed to rising demand for energy, data centre infrastructure, ICT products, and aircraft as key drivers.

India’s current and upcoming aircraft orders from U.S. manufacturer Boeing alone are estimated at $70–80 billion, which could cross $100 billion once engines and spare parts are included. In addition, recent Budget incentives for data centres are expected to drive investments of $100–150 billion, further increasing demand for U.S.-sourced equipment.

Mr. Agrawal added that India’s total global imports of these critical items already exceed $300 billion, and are projected to cross $2 trillion over the next five years. In this context, sourcing $500 billion from the U.S. would support diversification rather than concentration of trade.

Looking ahead

With the joint statement imminent and the legal agreement targeted for mid-March, the India-U.S. trade deal is entering its final and most consequential phase. The immediate tariff relief from the U.S. is expected to provide a boost to Indian exporters, while the broader agreement could reshape bilateral trade flows over the next decade.

If executed as planned, the deal will mark one of the most significant milestones in India-U.S. economic engagement, balancing short-term gains with long-term strategic cooperation.