India-US Trade Talks Progress, Interim Agreement Expected by March

India’s Commerce Secretary and Chief Negotiator Rajesh Agrawal confirmed that India-US trade discussions are advancing, with an interim agreement expected to be finalised and signed before the end of March 2026. Agrawal briefed the media while releasing January trade data, noting that virtual negotiations have been ongoing and a delegation will travel to Washington next week to formalise the legal framework of the agreement. He also highlighted ongoing India-Canada Free Trade Agreement talks.

Timeline and Process for India-US Interim Trade Deal

Agrawal explained that the joint statement issued by India and the US outlines the broad contours of the interim agreement. The next step is to convert this understanding into a legal document.

“We expect that before the end of March, we should be able to finalise and sign the legal agreement. Drafting a legal agreement to the satisfaction of both sides may take time, but we are hopeful that the teams are progressing well,” Agrawal said. Earlier, at BIOFACH 2026, he told ANI that India’s target to formalise the interim deal by March, highlighting the importance of a timely conclusion for market access and trade continuity.

Sectors Set to Benefit

The Commerce Secretary emphasised India’s competitive advantage in labour-intensive industries, which form a key export strength in the US market. “The unique strength of India lies in the labour-intensive sectors. With this Interim Agreement, these industries will be able to grow unhindered,” he said.

Regarding concerns over the 18 per cent tariff ceiling, Agrawal noted that India’s competitors in the same region maintain tariffs above 18%, adding that the framework ensures exporters will retain unhindered market access while maintaining competitiveness.

Protecting Sensitive Sectors

Agrawal confirmed that India has safeguarded critical sectors such as dairy, fisheries, and agriculture in trade negotiations. “India negotiates with a clear mindset. Anything sensitive to farmers, fishermen, or the dairy sector is fully protected. In cases where minor access is allowed, mechanisms like Tariff Rate Quotas (TRQs) limit impact and protect domestic stakeholders,” he explained.

He added that India’s record over the past year, including five trade agreements, demonstrates consistent protection of sensitive sectors, including in US negotiations.

Positive Industry Response

Stakeholders and exporters have welcomed the interim agreement. “Businesses have been consulted at every stage. They are very positive about the outcome, giving it a thumbs up. Reciprocal tariffs are included, and no major red lines have been identified,” Agrawal said.

He also expressed confidence in India’s January trade performance, citing strong merchandise and services exports, which are expected to reflect positive growth in official data released on February 15.

India at BIOFACH 2026

India is participating as Country of the Year at BIOFACH 2026 in Nuremberg, Germany, showcasing its organic sector through 67 co-exhibitors from over 20 states. The 1,074 square meter pavilion highlights India’s growing organic industry and international trade potential.