India and US are fine-tuning trade deal after concluding most discussions, says minister Piyush Goyal | Today’s news
THE HAGUE: India and the US have concluded most discussions on a proposed trade deal and are fine-tuning the agreement, Commerce and Industry Minister Piyush Goyal said on Monday, signaling progress towards a deal that could bring more certainty to Indian exporters facing a change in US tariff policy.
“In the last four-and-a-half years, friends, we have concluded nine FTAs or bilateral trade agreements. I am adding the US, we have concluded most of the discussions and we are fine-tuning the agreement,” Goyal said at the India-Netherlands Business Forum in The Hague.
For Indian exporters, the deal could provide more predictability in pricing US-bound shipments and negotiating contracts. Any increase in exports would also offer a timely boost to an economy struggling with the fallout from wars in West Asia and Ukraine.
Goyal’s remarks follow a recent visit to India by US Secretary of State Marco Rubio, who said the two countries were “very, very close” to a trade deal, with a small number of issues remaining to be resolved.
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“We’re very, very close. I’d say we’re as close as you can get without a (inaudible) deal. I think there’s a small number of things that need to be wrapped up, so I think that’s going to happen soon,” Rubio said.
Market access
Goyal said India’s expanding network of trade agreements, including those under negotiation, will give it preferential access to economies representing $85 trillion of the $115 trillion global GDP.
“Just to give you the context of India considering opening our doors. By 2014, all the FTAs together opened $10 trillion of GDP where we had preferential access or where we opened doors to these countries,” said Goyal, who is on an official visit to the Netherlands.
“India would open its doors and have preferential market access to another $60 trillion of economies around the world. Combined, we now have $70 trillion of economies where we would have preferential trade agreements. There are eight more negotiations going on that will add another $15 trillion. So India would open its doors to $875 trillion out of $816 trillion percent.” global GDP with which we are building our partnership and opening the doors of complementary and cooperative nature to greater business engagement,” said Goyal.
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Bilateral trade between India and the US grew by 6.53% to USD 140.76 billion in fiscal year 2026 (FY26) from USD 132.2 billion in the previous year. India’s trade surplus narrowed to $33.9 billion from $40.9 billion. Exports to the US increased to $87.31 billion from $86.51 billion, while imports rose 17.16% to $53.45 billion from $45.62 billion.
The proposed deal comes as global supply chains face disruption from the wars in West Asia and Ukraine, along with a broader global slowdown. Merchandise exports remain important to India’s growth, with provisional Commerce Department data showing merchandise exports rose 23% year-on-year to $44.4 billion in September. Imports rose 8% to $74.61 billion, narrowing the trade deficit to $30.21 billion from $33 billion a year earlier.
Growth is holding
Goyal said India remains on track for strong growth despite international uncertainty.
“Despite all the problems in the world, we are the fastest growing major economy. Last year we grew by 7.7%. The IMF (International Monetary Fund) just came out with the numbers… We are expected to go up by 7%. My own estimate is that we will grow by 7.5% this year,” he said.
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The IMF raised its growth forecast for India by 60 basis points to 7% for FY27, strengthening its position as the fastest growing major economy.
Ramita Mishra contributed to this story.
The writer is in The Hague as a guest of the Confederation of Indian Industry.
