Winning Bizness Desk
Mumbai.India is not stepping back from its proposed trade agreement with the United States, but the formal signing will take place only after a new tariff structure is finalised. The clarification came from Commerce Secretary Rajesh Agrawal on Monday, who said discussions with the United States are still underway to settle the finer details of the arrangement. His statement comes amid speculation that the evolving global tariff regime, especially changes in US trade policy, could slow down progress on the much-anticipated deal.
Govt says signing after tariff framework finalised
Agrawal indicated that the agreement will be signed only when the “new architecture of tariffs” becomes clear. According to him, both sides are currently engaged in detailed negotiations to ensure that the proposed arrangement remains mutually beneficial.
Officials in the Commerce Ministry said the India-US trade engagement has been moving forward in stages. India had formally launched negotiations for a Bilateral Trade Agreement (BTA) with the United States in March 2025. Nearly a year later, on 7 February 2026, the two countries announced that they had reached a broad framework for an interim agreement covering reciprocal and mutually beneficial trade terms.
India expands trade ties with multiple partners
Alongside talks with Washington, India is simultaneously pursuing several other trade negotiations to expand its global economic partnerships. The Commerce Ministry said the country is currently negotiating six Free Trade Agreements with different nations and regional groupings.
Key ongoing negotiations include:
- Australia, where discussions are focused on deepening the existing economic cooperation agreement
- Sri Lanka, aimed at strengthening regional trade integration
- Peru and Chile, targeting wider market access in Latin America
- The Eurasian Economic Union, which includes Russia and several Central Asian economies
- Israel, where the first round of negotiations for a Free Trade Agreement took place in February 2026
Officials say these agreements form part of India’s broader strategy to diversify export destinations and reduce dependence on a limited set of markets.
Progress recorded in recently signed trade deals
The ministry also pointed to progress in several recently concluded agreements. India has already signed Free Trade Agreements with the United Kingdom and Oman over the past year.
Major milestones include:
- FTA with the United Kingdom signed on July 24, 2025
- Trade agreement with Oman concluded on December 18, 2025
- Negotiations with New Zealand completed
- Talks with the European Union also concluded, awaiting further formal processes
These agreements are expected to expand trade flows in sectors such as services, manufacturing, technology, and agriculture.
US tariff dispute reshapes global trade discussions
The uncertainty around tariffs largely stems from developments in the United States following a major court ruling. The US Supreme Court earlier struck down a set of tariffs imposed globally by former president Donald Trump. Among those measures was an 18 percent reciprocal tariff applied to India, which the court declared illegal.
Trump had originally imposed the tariffs in April 2025 by invoking the International Emergency Economic Powers Act (IEEPA), citing national security concerns. The court, however, ruled by a 6-3 majority that the President did not have the authority to use that law for imposing such tariffs. According to the ruling, the power to impose tariffs rests with the US Congress.
New tariff law emerges after court ruling
Following the Supreme Court verdict, Trump announced a fresh set of tariff measures under a different legal provision known as Section 122. The revised policy initially introduced a 10 percent tariff on several countries, which was later raised to 15 percent.
Officials say these changes in the US tariff structure are one of the reasons why India is waiting for clarity before signing the final trade agreement. According to the Commerce Ministry, once the tariff framework stabilises, the proposed India-US trade deal can move toward formal signing and implementation.
