India-US Interim Trade Deal Legal Text Likely to be Signed by March: Commerce Secy

India expects to finalise and sign the legal text of the India-US Interim Trade Deal before the end of March, Commerce Secretary Rajesh Agrawal said, indicating that negotiations are progressing, though legal drafting may take time.

Speaking on the sidelines of BIOFACH 2026 in Germany, Agrawal said the joint statement issued by both countries outlines the broad framework of the interim agreement. The next step involves converting that understanding into a formal legal document, he told ANI.

“We expect that before the end of March, we should be able to finalise and sign the legal agreement. However, drafting to the satisfaction of both sides can sometimes take time. The teams are working on i,t and March is the timeline we are looking at to make it operational,” he said.

Boost For Labour-Intensive Sectors

Highlighting the sectors likely to benefit, Agrawal said India’s strength lies in labour-intensive industries, which already enjoy strong demand in the US market. He expressed confidence that the agreement would provide these sectors with smoother access and help them expand further.

On concerns regarding the proposed 18 per cent tariff ceiling, he noted that competing countries in the region face tariffs above that level. According to him, when tariff adjustments are passed on to consumers and industries, Indian exporters will retain competitive access to the US market.

He added that exporters could regain supply chain opportunities missed during the Christmas season and sustain export growth in the coming years.

Sensitive Sectors Protected

Agrawal stressed that India has safeguarded its sensitive sectors, including dairy, agriculture and fisheries, during negotiations. He said India maintains a consistent position in trade talks to protect farmers and vulnerable industries.

Referring to five trade agreements concluded in the past year, he said all key sensitive sectors were protected in those deals as well. In cases where limited imports are permitted, India has used the Tariff Rate Quota (TRQ) mechanism to ensure market access remains controlled and does not harm domestic stakeholders.

Industry Response And Export Outlook

The Commerce Secretary said extensive consultations were held with stakeholder ministries and industry representatives during negotiations. According to him, businesses have responded positively and expressed satisfaction with the outcome.

He noted that in an environment where reciprocal tariffs are becoming standard, the interim agreement secures favourable terms for India without crossing major red lines.

On export performance, Agrawal said India continues to hold steady in both merchandise and services trade, with services exports performing strongly. Official trade data for January is expected on February 15, and he indicated the figures are likely to reflect a positive trend.

India is participating as the Country of the Year at BIOFACH 2026 in Nuremberg, showcasing its organic sector through 67 co-exhibitors from more than 20 states across a 1,074-square-metre pavilion.