India’s Commerce Secretary Rajesh Agrawal has said the long-awaited India-US trade deal is “more or less finalised” and will be signed at an appropriate time, offering fresh clarity for exporters and investors after months of negotiation. The comments, made on the sidelines of the Global Fintech Fest 2026, follow the February 2026 joint statement in which Washington cut its reciprocal tariff on Indian goods from 25% to 18%.
The bilateral trade agreement, first announced by President Trump on February 2, 2026, removed an additional 25% punitive tariff that had been layered on top of the reciprocal rate, bringing the effective overall US tariff on most Indian goods down to 18%. Indian officials say the remaining technical details are being worked through before a formal signing.
How Will the Finalised India-US Trade Deal Affect Exporters?
With the effective tariff rate now at 18%, Indian exporters in textiles, engineering goods, chemicals and electronics are expected to see improved price competitiveness in the US market compared to the 25% rate applied earlier in 2026. Commerce Ministry officials say the agreement is designed to lock in tariff predictability, which businesses have cited as a bigger concern than the tariff level itself.
What Do Trade Bodies and Analysts Say?
Industry chambers including CII and FIEO have welcomed the near-finalisation, saying it removes a major overhang that had slowed new US-bound export orders through mid-2026. Trade analysts note that while the broad framework is settled, sector-specific carve-outs — such as the separate Section 232 tariff regime on pharmaceuticals — remain outside the scope of this deal and will continue to be negotiated on their own track.
Market and Trade Reaction
Export-oriented sectors on Indian exchanges have shown renewed investor interest since the tariff cut took effect, with logistics and manufacturing-linked stocks among the biggest gainers. The rupee has remained largely rangebound on the news, with traders citing global crude prices as a bigger near-term driver than the trade deal itself.
What Happens Next?
Officials from both sides are expected to continue technical-level talks in the coming weeks to finalise the deal text before a formal signing ceremony, the timing of which has not yet been announced. Commerce Ministry officials say early conclusion remains the priority for both governments.
Frequently Asked Questions
What is the current status of the India-US trade deal?
As of September 2026, India’s Commerce Secretary says the deal is “more or less finalised” and will be signed at an appropriate time, though a formal signing date has not been set.
What tariff rate applies to Indian goods under the deal?
The effective US tariff on most Indian goods has been reduced to 18%, down from 25%, after the additional 25% punitive tariff was removed following the February 2026 agreement.
Are all sectors covered by the India-US trade deal?
No. Pharmaceuticals remain subject to a separate Section 232 tariff process, with generics currently exempted, so that sector is negotiated outside the main trade deal framework.
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