Mumbai: The proposed India-US trade deal has been more or less finalised, with the two countries now working on a framework to provide preferential market access before formally signing the agreement at an appropriate time, Commerce Secretary Rajesh Agrawal said on Wednesday.
Speaking to the media on the sidelines of the Global Fintech Fest 2026 here, Agrawal said a few issues were still being discussed between the two sides, but indicated that negotiations had reached an advanced stage.
“There are few things which both sides are discussing, but it will be signed at an appropriate time,” Agrawal said.
Agrawal said the two countries need to establish a mechanism that ensures preferential access to each other’s markets under the proposed agreement. He explained that India largely operates under most-favoured-nation (MFN) tariffs, while the US is currently using executive tariffs, making it necessary to develop an architecture that creates tariff differentials and provides preferential access for Indian businesses.
The Commerce Secretary said businesses in both countries were already engaging actively and were satisfied with the broad understanding reached between the two governments.
Agrawal also provided an update on India’s ongoing trade negotiations with other countries. The India-Chile free trade agreement has reached the final stage, although discussions are continuing on some areas. He said progress could be expected over the next two to three months.
India is also looking to bring the India-New Zealand free trade agreement into effect “as soon as possible”, with October being a potential timeline, according to the Commerce Secretary.
On concerns over rising freight costs and their impact on exporters, Agrawal said the government was working closely with exporters to ensure adequate access to ships and containers and to reduce cargo delays and logistics costs.
Despite higher freight costs, India’s exports grew by more than 15 per cent during the first four months, suggesting that the impact of elevated shipping expenses has so far been lower than initially expected.
Agrawal also stressed the need for India to diversify its services exports beyond information technology and IT-enabled services (IT/ITES) and professional services if the country is to sustain export growth over the long term.
India’s total exports stood at around $863 billion in 2025-26, of which services contributed approximately $421 billion. However, IT/ITeS-based services account for nearly half of India’s total exports, while professional services contribute another 30 per cent.
“So these are the two pillars on which our services exports are based right now but it needs diversification if we have to grow and if we have to grow sustainably for a long period of time, we need diversification,” Agrawal said.
(IANS)
