An Indian official confirmed on Monday that the framework for a trade deal between India and the United States is ready and awaits signing at an appropriate time, according to a PTI report. The official, who spoke on condition of anonymity, said the framework deal is finalised and both sides are clear on its contents. The development marks a significant milestone in bilateral trade negotiations that have been underway for months.
Framework Deal Ready for Signing
The official stated that "the framework deal is ready" and will be signed "whenever there is right time." Negotiations are proceeding for both the framework deal and a broader bilateral trade agreement (BTA), and both tracks are "progressing well," the official added. The Commerce and Industry Ministry, led by Minister Piyush Goyal, is leading the Indian side. Goyal and United States Trade Representative Jamieson Greer held bilateral discussions in India last month focusing on the first phase of the proposed BTA.
India Seeks Competitive Tariff Advantage
According to the official, India is seeking a tariff structure under the proposed agreement that provides it with a comparative advantage over competing countries. Trade agreements are fundamentally aimed at securing preferential market access and creating a comparative advantage, the official explained. "So that is something which is getting structured," the official said, without providing further details on the specific tariff lines under negotiation.
Bilateral Trade Relations Positive
The official clarified that there are no differences or challenges between the two sides. "So there is no negativity or any sort of differences between India and the US. Both sides know each other's expectations," the official stated. Trade between India and the US continues to expand, and India's imports of energy from the US have been increasing. Separately, Piyush Goyal dismissed a media report concerning the proposed trade pact, saying via a social media post that negotiating teams from both countries "remain fully engaged" in working towards a pact that is "balanced, commercially meaningful, and beneficial to businesses, farmers, workers and consumers."
Section 301 Investigations Underway
On June 2, the USTR released its findings from a forced labour investigation and proposed additional tariffs on imports from 60 economies under review. Under the proposal:
- Imports from Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan would attract a 10% tariff.
- Imports from the remaining 54 economies, including India and China, would face a proposed tariff of 12.5%. The proposed tariffs have not yet been finalised and remain at the proposal stage. The draft report relating to the excess capacity investigation is still awaited.
Commerce Secretary Rajesh Agarwal (also referred to as Agrawal in the source) said India is in discussions with the USTR regarding the Section 301 investigations covering forced labour and excess industrial capacity. "We are closely watching the outcome," he told media. The USTR initiated two separate Section 301 investigations on March 11 and 12, 2026, involving 60 economies over concerns linked to forced labour and excess industrial capacity. Agrawal noted, "So we understand that once the draft report comes, it will take 4 to 6 months minimum or maybe more, to complete the final outcome of that." He added that these investigations are ongoing, while the trade deal negotiations proceed independently.
Both the framework deal and the BTA remain under active discussion, with no fixed timeline for signing, though the official emphasised that progress is steady and mutual understanding is strong.
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