India and the United States are moving closer to finalising the first phase of their trade agreement, with Union Commerce and Industry Minister Piyush Goyal saying the deal has reached the legal drafting stage. On Thursday, October 15, 2026, Goyal said the first part of the India-US bilateral trade agreement had been finalised and that both sides were working on the final details. He expressed hope that the agreement would be completed soon. However, India wants to secure better trade terms than competing countries before putting the agreement into action.
The proposed trade deal aims to improve trade ties between India and the United States, two major economies. Both countries have been negotiating the agreement to improve market access, support businesses and increase trade in goods and services. The first phase is expected to address key trade issues, including tariffs and access for exporters. However, officials have not yet announced a final signing date.
Goyal said India would move forward once it secured a comparable or competitive advantage over other countries. India wants its exporters to receive trade terms that help them compete with countries such as Bangladesh, Vietnam and Indonesia in the US market. These countries compete with India in sectors such as textiles, clothing and other manufactured goods. Better tariff terms could help Indian businesses sell their products at more competitive prices in the American market.
Commerce Secretary Rajesh Agrawal also said the negotiations were moving in the right direction. He said India was seeking better access to the US market and greater stability in tariffs. However, uncertainty over the US tariff policy remains an important issue. India is waiting for more clarity on the possible impact of new US measures linked to countries that continue buying Russian oil. Officials have said this uncertainty must be addressed before the agreement can be put into effect.
The trade agreement is important for Indian exporters because the United States is one of India’s largest markets. According to Reuters, India’s goods exports to the US reached $42.79 billion between April and August 2026, compared with $40.39 billion during the same period a year earlier. India also recorded a trade surplus of nearly $34 billion with the United States in the 2025-26 financial year. A clear and stable trade agreement could help businesses plan exports, manage costs and explore new opportunities.
Meanwhile, the two countries continue to work towards improving their wider economic relationship. US Ambassador to India Sergio Gor said on Thursday that the major issues in the proposed trade deal had largely been settled. His remarks came ahead of US Secretary of State Marco Rubio’s planned visit to India from October 17 to 22. The visit is expected to include discussions on energy cooperation, business investment and wider economic ties.
Although the first phase has reached the legal drafting stage, the trade agreement has not yet been fully signed and implemented. India is seeking terms that protect its exporters and give them a fair chance to compete in the US market. The final outcome will depend on the remaining discussions, the tariff framework and the terms agreed by both governments.