India-US trade deal in final stage, Goyal says India to gain competitive edge
Synopsis
Commerce Minister Piyush Goyal says the India-US trade deal is in its final stretch, with concessions largely locked in and Washington working around a Supreme Court ruling to preserve India's tariff advantage. With the India-UK FTA set for 15 July and the EU deal weeks away from approval, India is on the cusp of its most significant trade realignment in years.
Key Takeaways
Commerce Minister Piyush Goyal confirmed on 2 July that India-US bilateral trade agreement (BTA) talks have entered the final stage.
Most key issues have been resolved; Goyal said 'concessions and other elements have largely been finalised.' US USTR Jamieson Greer has reportedly acknowledged India's demand for preferential market access over competing nations.
Following a US Supreme Court ruling striking down IEEPA tariffs, Washington is developing an alternative mechanism to preserve India's competitive advantage.
India's merchandise exports in April–June 2025 are projected to rise 15 per cent year-on-year despite tariff uncertainty.
The India-UK FTA takes effect on 15 July ; the India-EU FTA legal review is expected to conclude within 10–12 days .
Commerce and Industry Minister Piyush Goyal on Thursday, 2 July said that India-US bilateral trade agreement (BTA) negotiations have entered their concluding phase, with most substantive issues resolved and both sides aligned on a framework that would give New Delhi a preferential edge over competing nations. Goyal made the remarks at the NDTV Indo-Japan Strategic Dialogue in New Delhi.
Key Developments in the Negotiations
'We don't see any difficulties with the US,' Goyal said, adding that 'concessions and other elements have largely been finalised.' He indicated that India has consistently pushed for preferential market access over rival exporters — a stance that the US administration has acknowledged and accepted as a basis for the ongoing talks.
US Trade Representative Jamieson Greer has reportedly recognised India's position during the negotiation rounds, according to Goyal. This signals a degree of convergence at the senior diplomatic level that was not publicly confirmed in earlier rounds.
Impact of US Supreme Court Ruling on IEEPA Tariffs
The negotiations have had to navigate a significant legal development: the US Supreme Court recently struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Goyal said Washington is now working on an alternative mechanism to preserve the tariff architecture that would maintain India's competitive advantage in the US market. The minister said he does not foresee this legal shift derailing the deal.
India's Export Momentum and Trade Outlook
Despite elevated tariff uncertainty, India's exports to the US have held firm. Goyal projected that India's merchandise exports in the April–June 2025 quarter will rise approximately 15 per cent year-on-year, pointing to underlying demand resilience. Bilateral trade between the two countries has continued to expand through the negotiations.
India-UK FTA and EU Trade Agreement Updates
Goyal also confirmed that the India-UK Free Trade Agreement (FTA) will come into force on 15 July, unlocking new market access for Indian exporters across goods and services. On the India-European Union FTA, he said the legal scrutiny process is expected to conclude within 10 to 12 days, after which the agreement will move through the formal approval process. The minister expressed confidence it would be operationalised before the end of the year, noting that all 27 EU member states back the deal and none has opposed the negotiations.
Japan's Role in India's Economic Strategy
Goyal used the Indo-Japan dialogue platform to underscore Japan's strategic importance to India's long-term growth ambitions. While investment has historically anchored the bilateral relationship, he said the next chapter should prioritise expanded trade, technology partnerships, and skilled workforce mobility. This comes amid broader efforts to diversify India's economic partnerships as global supply chains continue to restructure.
The convergence of multiple trade milestones — the US BTA, the UK FTA, and the EU agreement — marks a potentially transformative period for India's external trade architecture, with outcomes that could reshape export competitiveness across sectors.
Point of View
But the devil lies in the post-IEEPA legal architecture Washington is still designing. India's 'competitive edge' claim hinges on a mechanism that does not yet exist in final form — and rival exporters from Vietnam to Mexico are lobbying for the same preferential treatment. The India-UK FTA and the EU deal's proximity create a diplomatic optics advantage, but the US deal's actual tariff schedules, once public, will determine whether the 'finalised concessions' hold up to scrutiny. India has a history of announcing trade deal timelines that slip; the July-to-year-end window for the EU agreement will be the first real test of whether this negotiating cycle is different.
NationPress
2 Jul 2026
Frequently Asked Questions
What is the current status of the India-US bilateral trade agreement?
The India-US bilateral trade agreement (BTA) is in its final stage of negotiations, with most key issues resolved, according to Commerce Minister Piyush Goyal on 2 July. Goyal said concessions and other elements have largely been finalised, and no major hurdles are anticipated.
How does the US Supreme Court's IEEPA ruling affect the India-US trade deal?
The US Supreme Court recently struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), requiring Washington to develop an alternative tariff mechanism. Goyal said the US is working on a replacement framework that would still preserve India's competitive advantage in the American market.
When will the India-UK Free Trade Agreement come into force?
The India-UK Free Trade Agreement (FTA) is set to take effect on 15 July, as confirmed by Commerce Minister Piyush Goyal. It will open new market access opportunities for Indian exporters across goods and services.
What is the timeline for the India-EU Free Trade Agreement?
The legal scrutiny of the India-EU FTA is expected to conclude within 10 to 12 days, after which it will enter the formal approval process. Goyal expressed confidence the agreement would come into force before the end of 2025, with all 27 EU member states backing the deal.
How are India's exports performing amid ongoing US trade negotiations?
India's exports to the US have remained resilient despite tariff uncertainty. Goyal projected merchandise exports in the April–June 2025 quarter will grow approximately 15 per cent year-on-year, reflecting continued demand for Indian goods in the American market.
