India and the United States are “very close” to finalising a bilateral trade agreement, Union Commerce and Industry Minister Piyush Goyal said, according to Reuters. However, he clarified that India will sign the deal only if it secures a clear competitive advantage over rival exporting countries.
India’s condition for the deal
Goyal said negotiations have largely been completed and the remaining discussions are focused on ensuring that India gets preferential treatment in tariffs compared to competing nations.
“The day the US finds appropriate tools to give us a competitive advantage, the deal is on,” he said.
He added that India cannot proceed with the agreement unless a framework is created that guarantees this edge.
Talks largely done, details pending
According to Goyal, the core structure of the deal was finalised earlier in the year.
“India-US deal was done on February 6 and teams have been working since then on finer details,” he said.
The ongoing discussions are aimed at ensuring India does not lose its export advantage if similar tariff benefits are extended to other countries.
What India means by “competitive advantage”
In simple terms, India wants its exports to face lower tariffs in the US compared to similar goods from competing countries such as Vietnam, Bangladesh, or others.
This would make Indian products more attractive in the US market, helping exporters increase sales, expand market share, and potentially create more jobs.
What the agreement could cover
The proposed trade pact is expected to include:
Tariff reductions
Rules of origin
Investment provisions
Sector-wise cooperation
If finalised, it would deepen economic ties between the world’s largest and fifth-largest economies.
What happens next
While both sides are said to be close to an agreement, the final hurdle remains resolving how India’s “competitive advantage” will be structured legally and practically. The deal will only be signed once this is settled.
