India-US trade deal: First phase finalised, legal drafting under way, says Piyush Goyal
According to Commerce Minister Piyush Goyal, India's trade agreement with the US has advanced to the legal drafting phase, aiming to grant India a competitive edge. The implementation of this pact is anticipated shortly. Meanwhile, negotiations for a free trade agreement with the European Union are expected to conclude by December.
India's commerce and industry minister Piyush Goyal announced on Thursday that the country has completed the first phase of negotiations for the much-anticipated India-US trade deal, with legal drafting now underway. Goyal expressed optimism that the process would be finalized soon and that the deal would become operational once India gains a competitive edge over its peers.
The minister also provided an update on India's trade negotiations with the European Union, stating that a free trade agreement would be signed in December and would take effect in February or March of the following year.
US Ambassador to India Sergio Gor confirmed on the same day that the two nations had finalized the major items on their trade deal checklist. Gor commended the speed of the negotiations as "incredible" and revealed that the US Congress had passed a significant piece of legislation, allowing President Donald Trump to impose sanctions on countries purchasing Russian oil and gas or aiding others in evading sanctions. The legislation garnered overwhelming bipartisan support in the 100-member US Senate, with 86 votes in favor.
Gor emphasized that the sanctions provisions were not targeted at any specific country, including India. He explained that the measures were based on quantitative thresholds and would be applied to countries falling within three categories: oil, gas, and sanctions evasion. Notably, India was among several countries that fell under one of these categories, but Gor emphasized that the goal was not to punish any nation but rather to help end the ongoing conflict in Ukraine.
Gor highlighted India's potential as a lucrative market for American businesses, citing the country's vast consumer base and the Indian government's approach to attracting foreign investment. He noted that India and the US have been engaged in bilateral trade negotiations since early 2025, aiming to address tariff-related issues, remove non-tariff barriers, and enhance market access.
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- 'Big items are done': Sergio Gor gives update on India-US trade deal timesofindia.indiatimes.com
